Compounding framework under FEMA enables administrative settlement of foreign exchange contraventions with prescribed authorities and procedures. The rules create a compounding mechanism under the Act allowing specified compounding authorities-Director of Enforcement, authorised officers, and graded Reserve Bank and Directorate officers under supervisory control-to accept applications in the prescribed Form with fee and documents, call for further information, afford a hearing and issue dated signed compounding orders within a statutory timeframe; they also prescribe exclusions to compounding, payment methods and timelines for the compounded sum, and consequences of non payment, while ensuring copies of orders are provided to the applicant and Adjudicating Authority.