RBI's Rs 2 Lakh Penalty Cap: A Welcome Relief for Minor FEMA Violations

Affluence Advisory , Last updated: 18 June 2025  
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The Reserve Bank of India (RBI) has announced a major compliance relief for minor violations under the Foreign Exchange Management Act (FEMA). Through its Master Direction on Compounding (22 April 2025) and Companion Circular (24 April 2025), RBI has allowed a Rs 2 lakh cap on penalties for certain

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Affluence Advisory
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