Rule 4 - Power of Reserve Bank to compound contravention - Foreign Exchange (Compounding Proceedings) Rules 2000.

4. Power of Reserve Bank to compound contravention : (1) If any person contravenes any provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) except clause (a) of Section 3 of that Act:- (a) in case where the sum involved in such contravention is 1 [ten lakhs rupees] or below, by the Assistant General Manager of the Reserve Bank of India; (b) in case where the sum involved in such contravention is more than rupees 1 [ten lakhs] but less than rupees 1 [forty lakhs], by the Deputy General Manager of Reserve Bank of India; (c) in case where the sum involved in the contravention is rupees 1 [forty lakhs] or more but less than rupees 1 [hundred lakhs] by the General Manager of Reserve Bank of India: (d) in case the sum involved in such contravention is rupees 1 [one hundred lakhs] or more, by the Chief General Manager of the Reserve Bank of India: Provided further that no contravention shall be compounded unless the amount involved in such contravention is quantifiable. (2) Nothing contained in sub-section (1) shall apply to a contravention committed by any person within a period of three years from the date on which a similar contravention committed by him was compounded under these rules. Explanation :- For the purposes of this rule, any second or subsequent contravention committed after the expiry of a period of three years from the date on which the contravention was previously compounded shall be deemed to be a first contravention. (3) Every officer specified under sub-rule (1) of rule 4 of the Reserve Bank of India shall exercise the powers to compound any contravention subject to the direction, control and supervision of the Governor of the Reserve Bank of India. (4) Every application for compounding any contravention under this rule shall be made in Form to the Reserve Bank of India, Exchange Control Department, Central Office, Mumbai along with a fee of Rs. 5000/- by Demand Draft in favour of compounding authority. ************* Notes : 1. (i) in clause (a), for the words five lakhs , the words ten lakhs' (ii) in clause (b), for the words five lakhs and twenty lakhs , the words ten lakhs and forty lakhs (iii) in clause (c), for the words twenty lakhs and fifty lakhs , the words forty lakhs and hundred lakhs (iv) in clause (d), for the words fifty lakhs , the words one hundred lakhs has been substituted vide Notification No. G. S. R. 613(E) dated 27/8/2008