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<h1>Compounding of FEMA contraventions: a suo moto compounding application requires initiation of the compounding process.</h1> When a contravention is identified or brought to the Reserve Bank other than via the prescribed compounding application, the Bank will determine whether it is technical/minor (administrative/cautionary advice), material (requires compounding under the prescribed procedure), or sensitive/serious (refer to the Directorate of Enforcement). If an entity files a suo moto compounding application admitting the contravention, it shall not be treated as technical or minor and the compounding process will be initiated under section 15(1) of FEMA read with the compounding rules.