RBI to place compounding orders on website from June 1

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Mumbai | Published: May 26, 2016 8:47:58 PM

To ensure transparency and greater disclosure, the Reserve Bank today said it will disclose all compounding orders under FEMA from June 1 for information of general public.

RBI, Reserve Bank of India, SS Mundra, ATMTo ensure transparency and greater disclosure, the Reserve Bank today said it will disclose all compounding orders under FEMA from June 1 for information of general public. (Reuters)

To ensure transparency and greater disclosure, the Reserve Bank today said it will disclose all compounding orders under FEMA from June 1 for information of general public.

“…the RBI will now place on its website the compounding orders passed on or after June 1, 2016 and also a guidance note on the methodology used for calculation of the amount imposed under the compounding process, for information of general public,” the central bank said.

The data will be updated at monthly intervals.

“It may, however, be noted that the guidance note is meant only for the purpose of broadly indicating the basis on which the amount to be imposed is determined by the compounding authorities in the Reserve Bank,” it added.

The RBI further said that the actual amount imposed may sometimes vary, depending on the circumstances of the case taking into account other relevant factors.

Compounding is a voluntary process whereby persons, who have contravened the provisions of the Foreign Exchange Management Act 1999 (FEMA) or the Rules/Regulations, apply to the RBI seeking compounding of contraventions.

The contraventions are compounded and orders are issued imposing an amount to be paid by the applicant.

 

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