9911796707
TMI BlogForeign Exchange Management Act, 1999 (FEMA) Foreign Exchange (Compounding Proceedings) Rules, 2000 (the Rules) - Compounding of Contraventions under FEMA, 1999X X X X Extracts X X X X X X X X Extracts X X X X ..... unding Proceedings) Rules, 2000, effective from June 1, 2000, Reserve Bank is empowered to compound contraventions relating to rule 7, 8 and 9 of and the third schedule to the Foreign Exchange Management (Current Account Transactions) (FEMCAT) Rules, 2000. With a view to providing comfort to individuals and corporate community by minimizing transaction costs and the same time taking a serious view of wilful, malafide and fraudulent transactions, the Reserve Bank was, vide GSR 609 (E) dated September 13, 2004 empowered to compound all the contraventions of Foreign Exchange Management Act, 1999 (FEMA) except section 3(a) of FEMA. 3. To ensure more transparency and greater disclosure, it has now been decided as hereunder: I. Public disclosur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the contents of this circular to the notice of their constituents and customers concerned. 5. The directions contained in this circular have been issued under section 10 (4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999). Yours faithfully, (Shekhar Bhatnagar) Chief General Manager-in-Charge Annex Guidance Note on computation of the amount imposed under the Foreign Exchange (Compounding Proceedings) Rules 2000 Ref : A.P. (DIR Series) Circular No. dated May 26, 2016 I. Computation Matrix Type of contravention Existing Formula 1] Reporting Contraventions A) FEMA 20 Para 9(1)(A), 9(1)(B), part B of FC(GPR), FCTRS (Reg. 10) and taking on record FCTRS (Reg. 4) B) FEMA 3 Non submission of ECB statements C) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emed to be 10% of the cost of project). 4] All other contraventions except Corporate Guarantees Rs.50000/- + given percentage: 1st year : 0.50% 1-2 years : 0.55% 2-3 years : 0.60% 3-4 years : 0.65% 4-5 years : 0.70% > 5 years : 0.75% 5] Issue of Corporate Guarantees without UIN/ without permission wherever required /open ended guarantees or any other contravention related to issue of Corporate Guarantees. Rs.500000/- + given percentage: 1st year : 0.050% 1-2 years : 0.055% 2-3 years : 0.060% 3-4 years : 0.065% 4-5 years : 0.070% >5 years : 0.075% In case the contravention includes issue of guarantees for raising loans which are invested back into India, the amount imposed may be trebled. II. The above amounts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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