Amendment to Directions for Compounding of Contraventions under FEMA: The key change relates to capping of the maximum compounding amount. The new clause, Para 5.4.II.vi, states that subject to the satisfaction of the compounding authority, the maximum compounding amount imposed for contravention of each regulation or rule within a compounding application can be capped at ₹2,00,000. This capping applies specifically to contraventions listed under row 5 of the computation matrix mentioned in the Master Directions. (RBI Notification 32/2025 Dated 24/04/2025)
