Reserve Bank Of India
A.P. (DIR Series) Circular No. 20
August 12, 2013
To,
All Category - I Authorised Dealer Banks
Madam / Sir,
Foreign Exchange Management Act, 1999 (FEMA)
Foreign Exchange (Compounding Proceedings) Rules, 2000 (the Rules) -
Compounding of Contraventions under FEMA, 1999
Attention of Authorised Dealers (ADs) and their constituents is invited to
paragraph 7.2 of
A.P. (DIR Series) Circular No. 56 dated June 28, 2010 wherein
they were advised to ensure that the applications for compounding are submitted
only after the transactions are complete and all the requisite approvals are in
place. Of late, we have been receiving a number of applications for compounding
of contraventions of FEMA, 1999 which are submitted without obtaining proper
approvals or permission from the concerned authorities leading to avoidable
correspondence with the applicants and also return of applications. In case the
application has to be returned for this reason or any other reason, the
application fees of Rs.5000/- received along with the application fees is also
returned.
- To expedite the refund of compounding fees in such cases, it has been decided
to credit the same to the applicant’s account through NEFT. The applicants are
advised to furnish their mandate and details of their bank account as per ANNEX
along with the application in the prescribed format and other documents required
to be submitted in terms of the instructions contained in
A.P. (DIR
Series)Circular Nos. 56 and
57 dated June 28, 2010 and December 13, 2011
respectively.
- Further, the Annexes relating to Foreign Direct Investment, External
Commercial Borrowings, Overseas Direct Investment and Branch Office / Liaison
Office, as given in
A.P.(Dir Series) Circular No. 57 dated December 13, 2011,
have also been modified to include the details of income-tax PAN and the
activity as per NIC codes – 1987. It may please be noted that the application
will be treated as incomplete without these details.
- The applicants may also note to bring to the notice of the compounding
authority change, if any, in the address/contact details of the applicant during
the pendency of the compounding application with Reserve Bank.
- Authorised Dealers may bring the contents of this circular to the notice of
their constituents and customers concerned.
- The directions contained in this circular have been issued under sections 10
(4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999).
Yours faithfully,
(Rudra Narayan Kar)
Chief General Manager-in-Charge
RBI/2013-14/176