ENA Sectors 2024-09-13 17:44:39 <p><span style="font-size:14px"><strong>New Delhi, Sep 13 (KNN)</strong> The Ministry of Finance has announced significant changes to the Foreign Exchange Management Act (FEMA) compounding procedures, aiming to expedite case settlements and simplify regulatory processes.</span></p> <p><span style="font-size:14px">The new Foreign Exchange (Compounding Proceedings) Rules, 2024, released on Thursday, introduce higher monetary thresholds for various officials and new electronic payment options.</span></p> <p><span style="font-size:14px">Under the revised rules, Reserve Bank of India (RBI) officers have been granted increased monetary limits for handling cases.</span></p> <p><span style="font-size:14px">Assistant General Managers can now manage cases up to Rs 60 lakh, a substantial increase from the previous limit of Rs 10 lakh.</span></p> <p><span style="font-size:14px">The thresholds for Deputy General Managers, General Managers, and Chief General Managers have also been raised significantly to Rs 2.5 crore, Rs 5 crore, and more than Rs 5 crore, respectively.</span></p> <p><span style="font-size:14px">Similar adjustments have been made for Directorate of Enforcement (ED) officials.</span></p> <p><span style="font-size:14px">Deputy Directors can now handle cases up to Rs 5 lakh, while Additional Directors, Special Directors, and Directors can manage cases up to Rs 10 lakh, Rs 50 lakh, and Rs 1 crore or more, respectively.</span></p> <p><span style="font-size:14px">The ministry has also introduced electronic payment options for affected parties and empowered compounding authorities to refer cases to the ED for further investigation when deemed necessary.</span></p> <p><span style="font-size:14px">These revisions are expected to allow senior officials at both the RBI and ED to focus on more significant cases while enabling junior officers to handle a larger volume of applications.</span></p> <p><span style="font-size:14px">Industry experts anticipate this will lead to faster resolution of both pending and new cases. The changes align with Finance Minister Nirmala Sitharaman's budget announcement to simplify regulations for foreign investments.</span></p> <p><span style="font-size:14px">By restructuring the compounding process, the government aims to create a more efficient and streamlined regulatory environment for foreign exchange matters in India.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 39270 https://knnindia.co.in/news/newsdetails/sectors/finance-ministry-revises-fema-compounding-rules-to-streamline-case-settlements 2024-09-13 17:44:39 knnindia.co.in