Overview
Contraventions under FEMA — a missed FC-GPR, a late FLA return, an incorrect valuation — do not go away on their own. The RBI's compounding mechanism lets a company or individual admit the contravention and pay a computed amount to regularise it, closing the matter formally.
We assess the contravention, prepare the compounding application with the required documentation, compute the likely compounding amount, and represent you before the RBI through to the compounding order.
What's included
- Contravention assessment
- Compounding application preparation
- Amount computation
- Supporting documentation
- Representation before the RBI
Frequently asked questions
What is FEMA compounding?
A process that lets a person or company regularise a FEMA contravention by admitting it and paying an amount fixed by the RBI, instead of the matter remaining open.
What kind of contraventions can be compounded?
Most procedural and reporting contraventions, such as late or missed FC-GPR/FC-TRS filings or pricing issues — certain serious contraventions are excluded.
Does compounding avoid penalty?
It replaces open-ended risk with a known, computed amount and formally closes the contravention — it is a regularisation route, not a penalty waiver.
Talk to us about RBI Compounding Assistance.
Rashmi K.S. & Associates · Practising Company Secretaries · Balewadi, Pune