RBI has issued amendments to Master Directions on compounding of contraventions under FEMA, 1999, dated April 22, 2025. The amendment provides that Subject to satisfaction of the compounding authority, based on the nature of contravention, exceptional circumstances/ facts involved in case, and in wider public interest, the maximum compounding amount imposed may be capped at INR 2,00,000/- for contravention of each regulation/ rule (applied in a compounding application) with respect to contraventions under row 5 of the above computation matrix.
All AD Category-I banks and Authorised banks may bring the guidelines contained in this circular to the notice of their constituents.
