Master Directions on Compounding of Contraventions under FEMA: The Master Directions outlines the process for compounding contraventions of FEMA, excluding those under Section 3(a), upon application by the contravener. It details the application procedure, cases not eligible for compounding (e.g., repeated contraventions within three years, serious offenses like money laundering, and non-completion of administrative actions), and the factors considered when determining the compounding amount, including undue gains, loss caused, and the contravener’s conduct. A guidance note provides a computation matrix for various types of contraventions. The compounding authority will issue an order after a hearing, and the specified amount must be paid within 15 days. (RBI Master Directions 135/2025 Dated 22/04/2025)