RBI delegates Compounding Powers under FEMA to its Regional Offices

Dated 13.12.011

As a customer service measure and for operational convenience, it has been decided to delegate powers to the Regional Offices of the Reserve Bank of India to compound certain contraventions of FEMA 1999. The contraventions include: (i) delay in reporting of inward remittance, (ii) delay in filing of form FC-GPR after allotment of shares and (iii) delay in issue of shares beyond 180 days. (i.e. paragraphs 9(1)(A), 9(1)(B) and 8, respectively, of Schedule I to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000, notified vide Notification No. FEMA 20/2000-RB dated May 3, 2000 and as amended from time to time).

The powers delegated are:

Detailed instructions in this regard are given in A.P. (DIR Series) Circular No. 57 dated December 13, 2011.

Alpana Killawala
Chief General Manager

Compounding powers under FEMA delegated to regional offices to settle specified foreign exchange contraventions administratively. Compounding powers under FEMA are delegated to specified Regional Offices to compound contraventions including delay in reporting inward remittances, delay in filing Form FC-GPR after allotment of shares, and delay in issuance of shares; the delegation establishes a two-tier regime where certain Regional Offices may compound reporting and filing contraventions subject to a monetary cap and principal Regional Offices may compound those contraventions plus delayed issuance of shares without a monetary limit, implemented by a central circular with detailed instructions.