Foreign Exchange (Compounding Proceedings) Rules, 2024 Notified

The Ministry of Finance has notified the Foreign Exchange (Compounding Proceedings) Rules, 2024, which replace the existing Foreign Exchange (Compounding Proceedings) Rules, which were issued in 2000. These new rules took effect on September 12, 2024.

Under the Foreign Exchange (Compounding Proceedings) Rules, 2024, the fee for filing a compounding application has been increased to Rs 10,000 plus GST, up from the previous fee of Rs 5,000.

The notification has announced that Assistant General Managers at the RBI can now handle compounding applications up to Rs 60 lakh, an increase from the previous limit of Rs 10 lakh. Additionally, the limits for Deputy General Managers and General Managers have been raised to Rs 2.5 crore and Rs 5 crore, respectively.

The new rules are designed to simplify the regulations governing foreign investments.

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