Date:02/02/2005 URL: http://www.thehindubusinessline.com/2005/02/02/stories/2005020202160600.htm

Back FEMA violations: Revised RBI procedures

Our Bureau

Mumbai , Feb. 1

THE Reserve Bank of India, in consultation with the Central Government, has reviewed the procedures for compounding of contravention under the Foreign Exchange Management Act (FEMA), in order to minimise transaction costs.

The central bank said that while the review is in order to provide comfort to citizens and the corporate community, a severe view would be taken of wilful, mala fide and fraudulent transactions.

Accordingly, the responsibilities of administering compounding of contravention cases under FEMA have been vested with the RBI with the exception of cases pertaining to hawala transactions.

The Directorate of Enforcement will continue to deal with them.

The RBI has since issued directions to the authorised dealers operationalising the revised procedures for compounding of contravention under FEMA.