The Reserve Bank of India (RBI) issued Circular RBI/FED/2025-26/98, A.P. (DIR Series) Circular No. 15/2025-26, dated November 24, 2025, amending directions on compounding of contraventions under the Foreign Exchange Management Act, 1999 (FEMA). The circular updates the Master Directions on compounding dated April 22, 2025, specifically streamlining the receipt of compounding application fees and the sums for which contraventions are compounded (compounding amount). It mandates that all such payments must now be made through National Electronic Fund Transfer (NEFT) or Real Time Gross Settlement (RTGS) to revised account details provided in the updated Annexure I. The amendments aim to simplify and standardize the payment process for authorised persons and their constituents. The circular also clarifies that the directions are issued under sections 10(4) and 11(1) of FEMA, without prejudice to permissions or approvals required under other laws, ensuring compliance with the regulatory framework for handling contraventions under FEMA.
Reserve Bank of India
RBI/FED/2025-26/98
A.P. (DIR Series) Circular. No 15/2025-26 Dated: November 24, 2025
To,
All Authorised Persons
Madam / Sir,
Amendments to Directions – Compounding of Contraventions under FEMA, 1999
Attention of Authorised Persons is invited to Master Directions on compounding of contraventions under FEMA, 1999, dated April 22, 2025.
2. In order to streamline the receipt of compounding application fee and ‘sum for which a contravention is compounded’ (‘compounding amount’), it has been decided to change the account details of account where compounding application fee and compounding amount will be received through National Electronic Fund Transfer (NEFT), Real Time Gross Settlement (RTGS). Accordingly, Annexure I of the aforesaid Master Directions has been modified to include the revised account details.
3. All Authorised Persons may bring the guidelines contained in this circular to the notice of their constituents.
4. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approval, if any, required under any other law.
Yours faithfully,
(Dr. Aditya Gaiha)
Chief General Manager in Charge
