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ARTICLE · 20 SEPTEMBER 2024

Compounding Authority And Their Underlying Pecuniary Jurisdiction Under FEMA

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The Ministry of Finance notified Foreign Exchange (Compounding Proceedings) Rules, 2024 ("Rules") on September 12, 2024

IndiaFinance and Banking
Vijay Pal Dalmia
Vijay Pal Dalmia
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The Ministry of Finance notified Foreign Exchange (Compounding Proceedings) Rules, 2024 ("Rules") on September 12, 2024, which supersedes theerstwhile rules laid out in the year 2000. The provisions came into effect on 12.09.2024. Key changes incorporated within the Rules are mentioned below:

KEY CHANGES:-

  1. Compounding authority and their underlying pecuniary jurisdiction:

The Rules modified the limits provided to compounding authorities to compound various contraventions mentioned therein. The authorities and their respective pecuniary limits for compounding cases of contravention are provided as follows:

  • Case where the sum involved in such contravention does not exceed sixty lakh rupees, an officer not below the rank of the Assistant General Manager of the Reserve Bank;

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