Compounding of contraventions provides a voluntary mechanism to settle admitted FEMA breaches subject to quantification and authority discretion. Compounding under FEMA is a voluntary statutory mechanism for settlement of admitted, quantifiable contraventions administered mainly by the Reserve Bank of India under Section 15 and the Compounding Rules, 2000; applications must follow prescribed formats with supporting annexes, are subject to CA discretion in assessing compoundability and quantifying sums by reference to factors like unfair gain and loss to the exchequer, and on payment and compliance result in discharge from further proceedings, whereas non payment or serious issues may lead to enforcement referrals.