Register Now

Login

Lost Password

Lost your password? Please enter your email address. You will receive a link and will create a new password via email.

Add question

Sorry, you do not have a permission to add a question.
You must login to ask question.

Contravention & Penalties (FEMA) – Quiz !

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.

Here are 10 things that you should know. Take the quiz to test your knowledge.

 

Take This Challenge !

Leave a reply