Notification/Circular No. 15/2025-26 (RBI/FED/2025-26/98) dated November 24, 2025
Applicable Act/Rule – Foreign Exchange Management Act, 1999
RBI regulates the compounding mechanism under FEMA to allow applicants to regularise past contraventions by paying the prescribed fee and compounding amount. These amounts were earlier being deposited into the bank account specified in the original Master Directions
RBI has amended Annexure I of the Master Directions dated April 22, 2025 by replacing the old bank account with a new designated account for receiving both the compounding application fee and the compounding amount through NEFT/RTGS. Authorised Persons must inform their clients and ensure that all future remittances relating to compounding are made strictly to the revised account. These directions are issued under sections 10(4) and 11(1) of FEMA and operate with immediate effect.
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