AUTHORISATION TO FOREIGN EXCHANGE DEPARTMENT, CENTRAL OFFICE CELL, NEW DELHI, PRE-REQUISITES FOR COMPOUNDING, TECHNICAL, MINOR, MATERIAL AND SERIOUS CONTRAVENTIONS, ISSUE OF COMPOUNDING ORDER, PAYMENT AFTER COMPOUNDING ORDER
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Foreign Exchange Facilities for Individuals — Foreign Exchange Facilities for Individuals.
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Free sample — 8 of 66 rapid-fire Q&A cards.
Which authority grants authorisation to the Foreign Exchange Department, Central Office Cell (FEDCO) in New Delhi to compound contraventions under FEMA?
The Reserve Bank of India grants authorisation to FEDCO, New Delhi, empowering it to compound specified contraventions of FEMA 1999 on behalf of the central bank.
What is the full form of FEDCO in the context of FEMA compounding?
Foreign Exchange Department Central Office Cell, New Delhi.
What is the primary purpose of the compounding mechanism under FEMA 1999?
Compounding allows contraventions of FEMA to be settled by payment of a specified sum without resorting to lengthy adjudication proceedings, thereby providing an expeditious resolution mechanism for violations.
Under which Act is the compounding of contraventions related to foreign exchange regulated?
Foreign Exchange Management Act (FEMA), 1999.
Who is eligible to apply for compounding of a contravention under FEMA?
Any person who has committed a contravention of FEMA 1999, whether an individual, company, or other entity, may voluntarily apply to the RBI or the Enforcement Directorate for compounding.
Which rules govern the procedure for compounding of contraventions under FEMA?
FEMA Compounding Rules (Foreign Exchange (Compounding Proceedings) Rules, 2000).
What is the key pre-requisite regarding the nature of the contravention before a compounding application is accepted?
The contravention must not involve any proceeds of crime or money laundering, and the applicant must make a voluntary disclosure with a genuine intention to regularise the violation.
What is the meaning of 'compounding' in the context of FEMA 1999?
Settling a contravention by paying a sum of money instead of facing prosecution.
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