MEANING, FULL FORMS, LEGAL BASE OF COMPOUNDING, PENALTY UNDER SECTION 13(1), POWER TO COMPOUND BY RBI, DELEGATION OF POWERS TO REGIONAL OFFICE · One-liners

1 What does FEMA stand for?

FEMA stands for Foreign Exchange Management Act, enacted in 1999 to replace FERA and manage foreign exchange transactions in India.

2 What is the full form of FEMA?

Foreign Exchange Management Act, 1999.

FEMA का पूरा नाम क्या है? — विदेशी मुद्रा प्रबंधन अधिनियम, 1999।

3 What does FERA stand for and why was it replaced?

FERA stands for Foreign Exchange Regulation Act, 1973; it was replaced by FEMA in 1999 because FERA was a criminal law with harsh penalties, while FEMA adopts a civil law approach focused on management rather than regulation.

4 Under which section of FEMA is the power to compound contraventions granted?

Section 15 of FEMA grants compounding power to RBI.

FEMA की किस धारा के तहत उल्लंघनों को कम्पाउंड करने की शक्ति दी गई है? — FEMA की धारा 15 RBI को कम्पाउंडिंग की शक्ति देती है।

5 What is 'compounding' under FEMA?

Compounding under FEMA is the process by which a person who has contravened a provision of FEMA voluntarily admits the contravention and pays a sum to settle the matter without adjudication.

6 What is the minimum penalty under Section 13(1) of FEMA for a contravention?

Up to thrice the sum involved or Rs. 2 lakh.

FEMA की धारा 13(1) के तहत उल्लंघन के लिए न्यूनतम जुर्माना क्या है? — शामिल राशि का तीन गुना या 2 लाख रुपये, जो भी अधिक हो।

7 What is the legal basis for compounding of contraventions under FEMA?

The legal basis for compounding is Section 15 of FEMA, 1999, read with the Foreign Exchange (Compounding Proceedings) Rules, 2000 (amended from time to time).

8 What is the penalty for a continuing contravention under Section 13(2) of FEMA?

Additional penalty of Rs. 5,000 per day of continuing contravention.

FEMA की धारा 13(2) के तहत जारी उल्लंघन पर जुर्माना क्या है? — जारी उल्लंघन के प्रत्येक दिन के लिए 5,000 रुपये अतिरिक्त।

9 Which authority has the power to compound contraventions under FEMA?

The Reserve Bank of India (RBI) has the primary power to compound contraventions under FEMA, except for contraventions under Section 3(a) which are compounded by the Enforcement Directorate (ED).

10 Which FEMA contravention cannot be compounded?

Contraventions under FEMA Section 3(a) involving hawala cannot be compounded.

कौन सा FEMA उल्लंघन कम्पाउंड नहीं किया जा सकता? — FEMA की धारा 3(a) के तहत हवाला से संबंधित उल्लंघन कम्पाउंड नहीं होता।

11 What is the penalty prescribed under Section 13(1) of FEMA?

Under Section 13(1) of FEMA, a person contravening any provision is liable to a penalty up to thrice the sum involved in the contravention where the amount is quantifiable, or up to ₹2 lakh where the amount is not quantifiable.

12 What are the Foreign Exchange (Compounding Proceedings) Rules?

Rules framed in 2000 governing compounding procedure under FEMA.

विदेशी मुद्रा (कम्पाउंडिंग कार्यवाही) नियम क्या हैं? — 2000 में बने नियम जो FEMA के तहत कम्पाउंडिंग प्रक्रिया को नियंत्रित करते हैं।

13 What additional penalty can be imposed for a continuing contravention under Section 13(2) of FEMA?

For a continuing contravention, Section 13(2) provides for an additional penalty of up to ₹5,000 for every day after the first day during which the contravention continues.

14 What is the time limit within which RBI must pass a compounding order?

RBI must pass the order within 180 days of application receipt.

RBI को कम्पाउंडिंग आदेश कितने समय में पारित करना होता है? — आवेदन प्राप्ति के 180 दिनों के भीतर RBI आदेश पारित करता है।

15 What does 'adjudication' mean in the context of FEMA contraventions?

Adjudication under FEMA refers to the formal process of determining whether a contravention has occurred and imposing penalty, conducted by the Adjudicating Authority appointed by the Central Government.

16 To which categories of RBI Regional Offices is compounding power delegated?

Regional Offices at Mumbai, Delhi, Chennai, Kolkata, and others.

RBI के किन क्षेत्रीय कार्यालयों को कम्पाउंडिंग शक्ति सौंपी गई है? — मुंबई, दिल्ली, चेन्नई, कोलकाता और अन्य क्षेत्रीय कार्यालयों को।

17 Who are the compounding authorities for FEMA contraventions involving the general public?

The RBI is the primary compounding authority for most FEMA contraventions, and it has delegated powers to its Regional Offices to handle cases involving smaller amounts and routine contraventions.

18 What happens after a compounding order is passed and payment is made?

The contravener is given immunity from prosecution for that contravention.

कम्पाउंडिंग आदेश पारित होने और भुगतान के बाद क्या होता है? — उल्लंघनकर्ता को उस उल्लंघन के लिए अभियोजन से छूट मिल जाती है।

19 What is the meaning of 'contravention' under FEMA?

A contravention under FEMA means any act or omission that is in violation of any provision of the Act, any rule, regulation, notification, direction, or order issued under it.

20 What is the ceiling on compounding amount when the amount involved is not quantifiable?

Ceiling is Rs. 2 lakh when amount involved is not quantifiable.

जब शामिल राशि निर्धारित न हो तो कम्पाउंडिंग राशि की सीमा क्या है? — जब राशि निर्धारित न हो तो सीमा 2 लाख रुपये है।

21 Can all FEMA contraventions be compounded?

No, not all contraventions can be compounded; contraventions related to Section 3(a) of FEMA — dealing with hawala or unauthorised foreign exchange transactions — are investigated and compounded by the Enforcement Directorate, not RBI.

22 What is the nature of FEMA – is it a civil or criminal law?

FEMA is a civil law; contraventions are civil offences, not criminal.

FEMA की प्रकृति क्या है – यह दीवानी है या आपराधिक कानून? — FEMA एक दीवानी कानून है; उल्लंघन आपराधिक नहीं, दीवानी अपराध हैं।

23 What is the purpose of the compounding mechanism under FEMA?

The compounding mechanism allows voluntary admission and settlement of contraventions, avoiding prolonged adjudication, reducing litigation, and enabling faster resolution while bringing the violator into compliance.

24 What is meant by 'compounding' in the context of FEMA?

Settling a FEMA contravention by paying a sum without court proceedings.

FEMA के संदर्भ में 'कम्पाउंडिंग' का क्या अर्थ है? — बिना अदालती कार्यवाही के राशि चुकाकर FEMA उल्लंघन का निपटान।

25 What are the Foreign Exchange (Compounding Proceedings) Rules, 2000?

These are rules framed by the Central Government under FEMA that prescribe the procedure, timelines, and manner in which compounding applications are processed and orders are passed by the compounding authority.

26 Who is the primary authority empowered to compound FEMA contraventions?

Reserve Bank of India (RBI) is the primary compounding authority.

FEMA उल्लंघनों को कम्पाउंड करने का प्राथमिक अधिकार किसे है? — भारतीय रिज़र्व बैंक (RBI) प्राथमिक कम्पाउंडिंग प्राधिकरण है।

27 Within what time period must a compounding order be passed by RBI after receipt of application?

The compounding order must generally be passed within 180 days from the date of receipt of a complete application for compounding by the RBI.

28 Can a person voluntarily apply for compounding before a show-cause notice is issued?

Yes, a person can apply voluntarily even before a show-cause notice.

क्या कोई व्यक्ति नोटिस जारी होने से पहले स्वेच्छा से कम्पाउंडिंग के लिए आवेदन कर सकता है? — हाँ, नोटिस जारी होने से पहले भी स्वेच्छा से आवेदन किया जा सकता है।

29 What happens if a person does not pay the compounding amount within the stipulated time?

If the compounded amount is not paid within the specified period (usually within 15 days of the compounding order), the compounding order becomes void and adjudication proceedings may be initiated against the person.

30 What is the role of the Compounding Authority in the FEMA framework?

It adjudicates and accepts compounding applications, fixing the compounding sum.

FEMA ढांचे में कम्पाउंडिंग प्राधिकरण की क्या भूमिका है? — यह कम्पाउंडिंग आवेदन स्वीकार करता है और कम्पाउंडिंग राशि निर्धारित करता है।

31 To which Regional Offices of RBI has the power to compound been delegated?

RBI has delegated compounding powers to specified Regional Offices such as those in Mumbai, New Delhi, Chennai, Kolkata, and other major centres, based on the nature and amount of the contravention.

32 Within how many days must the compounding amount be paid after the order is passed?

The compounding amount must be paid within 15 days of the order.

आदेश पारित होने के बाद कम्पाउंडिंग राशि कितने दिनों में चुकानी होती है? — आदेश के बाद 15 दिनों के भीतर कम्पाउंडिंग राशि चुकानी होती है।

33 What is the significance of Section 15 of FEMA?

Section 15 of FEMA empowers the RBI (or any officer authorised by it) to compound contraventions under the Act, providing the statutory basis for the entire compounding framework.

34 What is the significance of the word 'compounding' in legal terminology?

Compounding means settling an offence by paying compensation instead of prosecution.

कानूनी शब्दावली में 'कम्पाउंडिंग' शब्द का क्या महत्व है? — कम्पाउंडिंग का अर्थ है अभियोजन की बजाय मुआवजा देकर अपराध का निपटान।

35 What is the role of the Enforcement Directorate under FEMA?

The Enforcement Directorate investigates contraventions under Section 3(a) of FEMA (such as hawala dealings) and compounds or refers cases for adjudication; it handles cases involving criminal intent and money laundering.

36 What does FEFI stand for in the exam context?

Foreign Exchange Facilities for Individuals.

परीक्षा संदर्भ में FEFI का क्या अर्थ है? — व्यक्तियों के लिए विदेशी मुद्रा सुविधाएं।

37 What is the difference between a 'penalty' and a 'compounding amount' under FEMA?

A penalty is imposed through formal adjudication after a finding of contravention, whereas a compounding amount is a mutually agreed settlement sum paid by the violator voluntarily to close the matter before or instead of adjudication.

38 Under Section 13(1) of FEMA, what is the maximum penalty as a multiple of amount involved?

Maximum penalty is three times the amount involved in the contravention.

FEMA की धारा 13(1) के तहत शामिल राशि के गुणक में अधिकतम जुर्माना क्या है? — उल्लंघन में शामिल राशि का अधिकतम तीन गुना जुर्माना लगाया जा सकता है।

39 Is compounding under FEMA a right or a discretionary remedy?

Compounding is a discretionary remedy; the RBI is not bound to compound a contravention and may refuse compounding if the contravention is serious, repeated, or involves wilful evasion.

40 Is compounding under FEMA a right of the contravener or a discretionary remedy?

Compounding is a discretionary remedy, not an absolute right.

FEMA के तहत कम्पाउंडिंग उल्लंघनकर्ता का अधिकार है या विवेकाधीन उपाय? — कम्पाउंडिंग एक विवेकाधीन उपाय है, यह कोई पूर्ण अधिकार नहीं है।

41 Can a person apply for compounding before being issued a show-cause notice?

Yes, a person can apply for compounding suo motu (voluntarily) even before a show-cause notice is issued, which is viewed favourably by the compounding authority.

42 What is the key difference between adjudication and compounding under FEMA?

Adjudication is a formal legal process; compounding is a voluntary settlement.

FEMA के तहत निर्णयन और कम्पाउंडिंग में मुख्य अंतर क्या है? — निर्णयन एक औपचारिक कानूनी प्रक्रिया है; कम्पाउंडिंग स्वैच्छिक निपटान है।

43 What documents are generally required for filing a compounding application with RBI?

A compounding application typically requires a letter admitting the contravention, details of the transaction, supporting documents, reasons for the contravention, and a copy of the relevant RBI notification or regulation allegedly violated.

44 What is the Enforcement Directorate's role under FEMA?

ED investigates serious FEMA violations; less serious ones are handled by RBI.

FEMA के तहत प्रवर्तन निदेशालय की क्या भूमिका है? — ED गंभीर FEMA उल्लंघनों की जांच करता है; हल्के मामले RBI संभालता है।

45 How is the compounding amount determined by the RBI?

The compounding amount is determined based on the nature and gravity of the contravention, the amount involved, the period of default, the gain made or loss caused, and previous contraventions, subject to the ceiling under Section 13(1).

46 What is the key legal base document for FEMA compounding proceedings?

Foreign Exchange (Compounding Proceedings) Rules, 2000.

FEMA कम्पाउंडिंग कार्यवाही का प्रमुख कानूनी आधार क्या है? — विदेशी मुद्रा (कम्पाउंडिंग कार्यवाही) नियम, 2000।

47 What is the ceiling on the penalty/compounding amount where the amount involved is not quantifiable?

Where the sum involved in the contravention is not quantifiable, the maximum penalty under Section 13(1) and consequently the compounding amount ceiling is ₹2 lakh.

48 What is the monetary threshold below which Regional Offices can compound FEMA cases?

RO can compound cases where amount involved does not exceed Rs. 10 lakh.

RBI के क्षेत्रीय कार्यालय कितनी राशि तक के FEMA मामले कम्पाउंड कर सकते हैं? — क्षेत्रीय कार्यालय 10 लाख रुपये तक के मामले कम्पाउंड कर सकते हैं।

49 What does 'delegation of powers to Regional Offices' mean in the context of FEMA compounding?

It means that the RBI Central Office has authorised certain Regional Offices to independently receive, process, and pass compounding orders for specified categories of contraventions, improving efficiency and decentralising the process.

50 What type of contraventions are specifically excluded from the compounding route under FEMA?

Contraventions involving national security or hawala transactions are excluded.

FEMA के तहत किस प्रकार के उल्लंघनों को कम्पाउंडिंग से बाहर रखा गया है? — राष्ट्रीय सुरक्षा या हवाला लेनदेन से जुड़े उल्लंघन इससे बाहर हैं।

51 Can a compounding order be appealed?

Once a person voluntarily pays the compounding amount and the order is passed, the matter is closed and there is generally no appeal against a compounding order; however, if compounding is refused, the party faces adjudication where appeal rights exist.

52 What is the role of an 'Authorised Dealer' in relation to FEMA compounding?

ADs must report customer contraventions to RBI which may initiate compounding.

FEMA कम्पाउंडिंग के संबंध में 'अधिकृत डीलर' की क्या भूमिका है? — ADs को ग्राहक उल्लंघनों की सूचना RBI को देनी होती है जो कम्पाउंडिंग शुरू कर सकता है।

53 What is the full form of 'AP DIR' as used in FEMA circulars?

AP DIR stands for Authorised Person — Dealers in Foreign Exchange (Authorised Persons — Foreign Exchange Dealers), referring to the RBI's circular series issued to authorised dealers and banks dealing in foreign exchange.

54 What does 'admission of contravention' mean in the compounding process?

Applicant formally acknowledges the FEMA violation while applying for compounding.

कम्पाउंडिंग प्रक्रिया में 'उल्लंघन की स्वीकृति' का क्या अर्थ है? — आवेदक कम्पाउंडिंग के लिए आवेदन करते समय FEMA उल्लंघन को औपचारिक रूप से मानता है।

55 What is the meaning of 'Authorised Person' under FEMA?

An Authorised Person under Section 2(c) of FEMA means an authorised dealer, money changer, offshore banking unit, or any other person authorised by RBI to deal in foreign exchange or foreign securities.

56 What was the predecessor law to FEMA and why was it replaced?

FERA 1973 was replaced because FEMA treats violations as civil not criminal.

FEMA से पहले कौन सा कानून था और इसे क्यों बदला गया? — FERA 1973 को इसलिए बदला गया क्योंकि FEMA उल्लंघनों को दीवानी मानता है।

57 Under FEMA, is a contravention treated as a criminal or civil offence?

Under FEMA, contraventions are treated as civil offences attracting monetary penalties, unlike under the earlier FERA where violations were treated as criminal offences leading to imprisonment.

58 What document does an applicant submit for initiating compounding under FEMA?

A written application with supporting documents and admission of contravention.

FEMA के तहत कम्पाउंडिंग शुरू करने के लिए आवेदक क्या दस्तावेज़ जमा करता है? — सहायक दस्तावेज़ों और उल्लंघन की स्वीकृति के साथ लिखित आवेदन।

59 What is the significance of 'admission of contravention' in the compounding process?

Admission of contravention is a prerequisite for compounding; by admitting the violation, the applicant avoids a contested adjudication, and this admission may be taken into account if the compounding application is rejected and adjudication follows.

60 How does RBI determine the compounding amount for a FEMA contravention?

RBI considers amount involved, duration, nature, and conduct of contravener.

RBI FEMA उल्लंघन के लिए कम्पाउंडिंग राशि कैसे निर्धारित करता है? — RBI राशि, अवधि, प्रकृति और उल्लंघनकर्ता के आचरण को ध्यान में रखता है।

61 What is the full form of AP DIR as used in FEMA circulars?

AP DIR stands for Authorised Persons Department (Foreign Exchange) Directions.

FEMA परिपत्रों में प्रयुक्त AP DIR का पूरा रूप क्या है? — AP DIR का अर्थ है अधिकृत व्यक्ति विभाग (विदेशी मुद्रा) निर्देश।

62 Can a compounding order under FEMA be appealed to any authority?

Appeal can be filed before the Appellate Tribunal for Foreign Exchange (ATFE).

क्या FEMA के तहत कम्पाउंडिंग आदेश के विरुद्ध अपील की जा सकती है? — विदेशी मुद्रा अपीलीय न्यायाधिकरण (ATFE) के समक्ष अपील की जा सकती है।

63 What is the significance of Section 15 of FEMA?

Section 15 empowers RBI to compound contraventions and specify procedure.

FEMA की धारा 15 का क्या महत्व है? — धारा 15 RBI को उल्लंघनों को कम्पाउंड करने और प्रक्रिया निर्धारित करने का अधिकार देती है।

64 What is meant by 'delegation of powers' to RBI Regional Offices for FEMA compounding?

RBI HO transfers compounding authority to ROs for specified smaller violations.

FEMA कम्पाउंडिंग के लिए RBI क्षेत्रीय कार्यालयों को 'शक्तियों का प्रत्यायोजन' क्या है? — RBI मुख्यालय निर्दिष्ट छोटे उल्लंघनों के लिए कम्पाउंडिंग अधिकार RO को सौंपता है।

65 What is the benefit to a contravener who opts for compounding under FEMA?

Avoids prolonged litigation and criminal prosecution by paying compounding sum.

FEMA के तहत कम्पाउंडिंग चुनने वाले उल्लंघनकर्ता को क्या लाभ होता है? — कम्पाउंडिंग राशि चुकाकर लंबी मुकदमेबाजी और अभियोजन से बचा जा सकता है।

66 What is the difference between a 'penalty' and 'compounding amount' under FEMA?

Penalty is imposed after adjudication; compounding amount is mutually settled.

FEMA के तहत 'जुर्माना' और 'कम्पाउंडिंग राशि' में क्या अंतर है? — जुर्माना निर्णयन के बाद लगाया जाता है; कम्पाउंडिंग राशि आपसी सहमति से तय होती है।

One-linersMEANING, FULL FORMS, LEGAL BASE OF COMPOUNDING, PENALTY UNDER SECTION 13(1), POWER TO COMPOUND BY RBI, DELEGATION OF POWERS TO REGIONAL OFFICE