FEFI · FOREIGNEXCHA

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

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Foreign Exchange Facilities for Individuals — Foreign Exchange Facilities for Individuals.

1 video class 66 one-liners

Quick revision

One-liners from this chapter

Free sample — 8 of 66 rapid-fire Q&A cards.

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.

What is the full form of FEMA?

Foreign Exchange Management Act, 1999.

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.

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

Section 15 of FEMA grants compounding power to RBI.

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.

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

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

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).

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.

Unlock all 66 one-liners

Self-quiz mode with hidden answers + printable deck.

Open the deck

Watch & learn