Compounding of Contraventions under FEMA, 1999 | Revised Master Direction

RBI re-issues Master Direction for Compounding of Contraventions under FEMA, 1999

The Reserve Bank of India (RBI) on May 24, 2022 has re-issued Master Direction for Compounding of Contraventions under FEMA, 1999.

The following has been amended namely: –

Application for Compounding –

Applications for compounding may be submitted together with the prescribed fee of Rs.5000/- by way of a demand draft drawn in favour of “Reserve Bank of India” and payable at the concerned Regional Office.

Along with the application in the prescribed format, the applicant may also furnish the details relating to

  • Foreign Direct Investment, External Commercial Borrowings, Overseas Direct Investment and Branch Office/Liaison Office, as applicable,
  • a copy of the Memorandum of Association and latest audited balance sheet along with an undertaking that they are not under any enquiry/investigation/adjudication by Directorate of Enforcement, as on the date of the application and;
  • to inform to the Compounding Authority/RBI immediately, in writing, if any enquiry/investigation/adjudication proceedings are initiated by the Directorate of Enforcement against the applicant after the date of filing the compounding application but on or before the date of issuance of the compounding order to enable the Bank to complete the compounding process within the time frame.

Complete circular attached

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