Contravention & Penalties
Contravention is a breach of the provisions of the Foreign Exchange Management Act (FEMA), 1999 and rules/ regulations/ notification/ orders/ directions/ circulars issued there under.
Compounding refers- to the process of voluntarily admitting the contravention, pleading guilty and seeking redressal. The Reserve Bank is empowered to compound any contraventions as defined under section 13 of FEMA, 1999 except the contravention under section 3(a) for a specified sum after offering an opportunity of personal hearing to the contravener. It is a voluntary process in which an individual or a corporate seeks compounding of an admitted contravention. It provides comfort to any person who contravenes any provisions of FEMA, 1999 [except section 3(a) of the Act] by minimizing transaction costs.
Willful, malafide and fraudulent transactions are, however, viewed seriously, which will not be compounded by the Reserve Bank. Whereas the contraventions that can not be compounded by the RBI can be compounded by the Enforcement Directorate. Different authorities are authorised for compounding of contravention depending upon the amount involved.
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- Question 1 of 10
1. Question1 points
Contravention and penalities under FEMA, 1999 are discussed under which sectionsCorrectIncorrect
- Question 2 of 10
2. Question1 points
Compounding of contravention meansCorrectIncorrect
- Question 3 of 10
3. Question1 points
Contravention made under section 13 may be compounded withinCorrectIncorrect
- Question 4 of 10
4. Question1 points
RBI is empowered to compound contravention committedCorrectIncorrect
- Question 5 of 10
5. Question1 points
If the compounding of contravention is within the power of RBI, which authority of RBI will be eligible for compounding if Amount involved is 5 lakhs or belowCorrectIncorrect
- Question 6 of 10
6. Question1 points
If RBI is not eligible for compounding of any contravention which authority can perform the procedureCorrectIncorrect
- Question 7 of 10
7. Question1 points
If amount of contravention involved is more than 5 lakh rupees but less than 25 lakh ( within RBI ambit), Which authority can compound the contraventionCorrectIncorrect
- Question 8 of 10
8. Question1 points
Which authority of DOE is eligible for compounding of contravention if the amount involved is 5lakh or belowCorrectIncorrect
- Question 9 of 10
9. Question1 points
IF compoundng of contravention involving amount more than 25 Lakhs but less than 50 Lakhs, to be done by RBI, which of the following authority is eligibleCorrectIncorrect
- Question 10 of 10
10. Question1 points
Which authority of DOE is eligible for compounding of contravention involving amount more than 5 lakh but less than 10LakhCorrectIncorrect