RBI/2016-17/220
A.P. (DIR Series) Circular No. 29
February
02, 2017
To
All Category- I Authorised
Dealer Banks
Madam / Sir,
Foreign
Exchange Management Act, 1999 (FEMA)
Foreign Exchange (Compounding Proceedings) Rules, 2000 (the Rules) -
Compounding of Contraventions under FEMA, 1999
Attention of all the Authorised
Dealer Category - I (AD Category - I) banks and their constituents is
invited to A.P. (DIR Series) Circular No. 117 and 36 dated April 4, 2014 and October 16,
2014 respectively, and the Foreign Exchange (Compounding Proceedings)
Rules, 2000 notified by the Government of India vide G.S.R.No.383 (E) dated
3rd May 2000, as amended from time to time, regarding delegation of powers
to the Regional Offices of the Reserve Bank of India to compound the
contraventions of FEMA.
2. In partial modification
thereof, it has been decided to delegate further powers to Regional Offices
as under:
FEMA
Regulation
|
Brief
Description of Contravention
|
Regulation 9(2) of Schedule I
to FEMA 20/2000-RB dated May 3, 2000
|
Delay in filing the Annual
Return on Foreign Liabilities and Assets (FLA return), by all Indian
companies which have received Foreign Direct Investment in the previous
year(s) including the current year
|
3. The powers to compound the
contraventions at Paragraph 2 above have also been delegated to all
Regional Offices (except Kochi and Panaji) without any limit on the amount
of contravention.
4. Kochi and Panaji Regional
offices can compound the above contraventions for amount of contravention
below Rupees One hundred lakh (Rs.1,00,00,000/-) only. The contraventions
of Rupees One hundred lakh (Rs.1,00,00,000/) or more under the jurisdiction
of Kochi and Panaji Regional Offices will continue to be compounded at
Central Office as hitherto.
5. Accordingly, applications for
compounding the above contraventions as at Paragraph 2, up to the amount of
contravention stated in paragraph 3 and 4 may be submitted by the concerned
entities to the respective Regional Offices under whose jurisdiction they
fall. For all other contraventions, applications may continue to be
submitted to Foreign Exchange Department, 5th floor, Amar Building, Sir
P.M.Road, Fort, Mumbai - 400001.
6. The above modifications will
come into force with immediate effect. All other instructions on
compounding shall remain unchanged. This provision is being clarified in
Para 3 and 7.4 of the Master Direction on Compounding of Contraventions
under FEMA, 1999.
7. Authorised Dealers may bring
the contents of this circular to the notice of their constituents and
customers concerned.
8. The directions contained in
this circular have been issued under Sections 10 (4) and 11 (1) of the
Foreign Exchange Management Act, 1999 (42 of 1999).
Yours
faithfully,
(Shekhar
Bhatnagar)
Chief General Manager-in-Charge
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