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Corporate Laws Central Ministry of Finance Foreign Exchange Management Act, 1999

Amendments to Directions - Compounding of Contraventions under FEMA, 1999

22-Apr-2025 | RBI/FED/2025-26/29 A.P. (DIR Series) Circular. No 02/2025-26

RBI has issued the circular regarding Amendments to Directions - Compounding of Contraventions under FEMA, 1999 effective from 22nd April, 2025.

By virtue of this circular, the provision contained at Paragraph 5.4.II.v of the Circular on Guidelines for compounding of contraventions under FEMA, 1999, issued vide A.P. (DIR Series) Circular No. 17/2024-25, regarding the sum payable for the compounding of conteravention for which compounding order was already passed, shall stand deleted and for such cases, the applicant shall be deemed to have made a fresh application, and the compounding amount payable shall not be linked to the earlier compounding order.

Also at the time of making payment of compounding application fee/ compounding amount through electronic mode, applicants are required to send an email communication to the concerned office of the Reserve Bank to reconcile the application fee/compounding amount received against the compounding applications submitted.

Additionally, in the aforementioned intimation mail, disclosures regarding the Mobile number of the applicant/ authorised representative, Office of the Reserve Bank, and Mode of submission of application shall now be included.

Please refer to the attached document for more information.

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