RBI Revises FEMA Compounding Rules: Penalty Capped at Rs 2 Lakh

Last updated: 28 April 2025

The Reserve Bank of India (RBI) has introduced a key amendment to its compounding framework under the Foreign Exchange Management Act (FEMA), 1999. As per A.P. (DIR Series) Circular No. 04/2025-26, the central bank has decided to cap the maximum compounding amount at ₹2,00,000 per regulation/rule fo

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