All RBI Circulars October 2024 detailed explanation I Monthly RBI Circulars - October I Hindi скачать в хорошем качестве

All RBI Circulars October 2024 detailed explanation I Monthly RBI Circulars - October I Hindi

All RBI Circulars October 2024 detailed explanation I Monthly RBI Circulars - October I Telegram Channel Link : https://t.me/decodeindian1 Directions - Compounding of Contraventions under FEMA, 1999 The provisions of section 15 of Foreign Exchange Management Act, 1999 (FEMA, 1999) enable compounding of contraventions and, empowers the RBI to compound any contravention as defined under section 13 of the FEMA, 1999. Except the contraventions under section 3 (a) of FEMA, 1999, on an application made by the person committing such contravention. What is meant by contravention and compounding of contravention? Contravention is a breach of the provisions of the Foreign Exchange Management Act (FEMA), 1999 and rules/ regulations/ notification/ orders/ directions/ circulars issued thereunder. Compounding refers to the process of voluntarily admitting the contravention, pleading guilty and seeking redressal.The Reserve Bank is empowered to compound any contravention as defined under section 13 of FEMA, 1999 except the contravention under section 3(a) ibid, for a specified sum after offering an opportunity of personal hearing to the contravener. It is a voluntary process in which an individual or a corporate seeks compounding of an admitted contravention. It provides comfort to any person who contravenes any provisions of FEMA, 1999 by minimizing transaction costs. Further, cases falling under Rule 9 of Foreign Exchange (Compounding Proceedings) Rules, 2024, shall not be eligible for compounding by the Reserve Bank. Government of India has notified the Foreign Exchange (Compounding Proceedings) Rules, 2024 in supersession of the Foreign Exchange (Compounding Proceedings) Rules, 2000. Further, in terms of Section 11 (2) of FEMA, 1999, RBI may, for the purpose of ensuring the compliance with the provisions of the Act or of any rule, regulation, notification, direction or order made thereunder, direct any authorized person to furnish such information, in such manner, as it deems fit. AD are therefore, advised to take necessary steps to ensure that checks and balances are incorporated in systems relating to dealing with and reporting of foreign exchange transactions so that contraventions of provisions of FEMA, 1999, attributable to the AD do not occur. In this connection, it is reiterated that in terms of Section 11(3) of FEMA, 1999, the RBI may impose on the authorized person a penalty for contravening any direction given by the RBI under this Act or failing to file any return as directed by the RBI. All AD Category – I banks and Authorised banks may bring the guidelines contained in this circular to the notice of their constituents All Authorised Dealer Category – I banks and Authorised banks Guidelines for compounding of contraventions under FEMA, 1999 In terms of Section 15 of the FEMA, 1999, any contravention under section 13 of FEMA 1999 {except that of Section 3(a) of the Act} may, on an application made by the person committing such contravention (hereafter referred as ‘applicant’), be compounded within one hundred and eighty days from the date of receipt of such application, by the officers of the Reserve Bank, as prescribed in Rule 4 of the Compounding Rules, 2024.Accordingly, in terms of Section 13(1) of the Act, if any person contravenes any provision of FEMA, 1999 Or any rule, regulation, notification, direction or order issued in exercise of the powers under this Act, Or contravenes any condition subject to which an authorization is issued by the Reserve Bank, He shall, upon adjudication, be liable to a penalty up to thrice the sum involved in such contravention where the amount is quantifiable Or up to Rupees Two lakhs where the amount is not directly quantifiable, and where the contravention is a continuing one, further penalty which may extend to Rupees Five thousand for every day after the first day during which the contravention continues. Certain cases not eligible for compounding In respect of a contravention committed by any person (applicant) within a period of three years from the date on which a similar contravention was committed and the same was compounded, such contraventions shall not be compounded, and the relevant provisions of the Act shall apply. Any contravention committed after the expiry of a period of three years from the date on which a similar contravention was previously compounded shall be deemed to be a first contravention. Contraventions of serious nature viz. transactions suspected of money laundering, terror financing or affecting sovereignty and integrity of the nation or where the contravener fails to pay the sum for which contravention was compounded within the specified period in terms of the compounding order, shall be referred to the DoE for further investigation and necessary action under the Act.