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Compounding of Contraventions under FEMA, 1999

Q. 10. Is it mandatory to appear for the personal hearing? +

Ans. It is not mandatory to attend/opt for the personal hearing. In case a person opts not to attend the personal hearing he//she may indicate his/her preference in writing. The application would be disposed of on the basis of documents submitted to the Compounding Authority. It may be noted that appearing for, or opting out of the personal hearing does not have any bearing, whatsoever, on the amount imposed in the compounding order, as the amount imposed is calculated based on the Guidance note on computation matrix as contained in the Master Direction on compounding of contraventions under FEMA.

10. What is non-competitive bidding and how will retail investors be able to participate in the same? +

A non-competitive scheme has been devised for participation of such investors in the auction. Under this scheme, investors are required to indicate the amount of their bids and not the price at which they want to subscribe. Allocation to such investors is made at the weighted average price emerged in the competitive bidding.
Presently in auction, up to 5 per cent of the notified amount is reserved for non-competitive bidding, while up to 20 per cent of the notified amount will be earmarked for such bidding in case of IIBs to encourage retail participation.
The retail investors will be able to participate in non-competitive bidding through primary dealers (PD) and banks. They can open a gilt account with PDs and banks or demat account for such participation.

Q.10. Can the MSE borrowers get collateral free loans from banks ? +

In terms of our circular RPCD.SME&NFS.BC.No.79/06.02.31/2009-10 dated May 6, 2010, banks are mandated not to accept collateral security in the case of loans upto ₹ 10 lakh extended to units in the MSE sector.

Q.10 What are the permissible sources for funding overseas investment ? +

A. Funding for overseas investment could be made by one or more of the following sources:the balances held in Exchange Earners Foreign Currency account of the Indian party maintained with an authorised dealer,proceeds of ADR/GDR issues,market purchases of foreign exchange,share swap (refers to the acquisition of the shares of an overseas entity by way of exchange of the shares of the Indian entity).Capitalisation of exports, royalties, etc.

10. Do same Rules apply to persons going for studies abroad?
+

For the purpose of studies abroad, exchange for maintenance expenses is released in the form of (i) currency notes up to US$ 2,000, (ii) the balance foreign exchange may be taken in form of traveller’s cheques or bank draft payable overseas.

10. Is there any restriction on withdrawal in rupees of funds held in an EEFC account? +

No, there is no restriction on withdrawal in Rupees of funds held in an EEFC account. However, the amount withdrawn in Rupees shall not be eligible for conversion into foreign currency and for re-credit to the account.

10. ഡിസംബർ 16, 2010 തീയതിയിലെ ഇന്ത്യാ ഗവൺമെന്റ് വിജ്ഞാപനം നമ്പർ 14/2010 / F.No.6 / 2/2007-E.S അനുസരിച്ച് എനിക്ക് എബിസി ബാങ്കിൽ ഒരു ‘സ്മാൾ അക്കൗണ്ട്’ ഉണ്ടാകാമോ? കൂടാതെ എനിക്ക് ഒരു 'ബേസിക് സേവിംഗ്സ് ബാങ്ക് ഡെപ്പോസിറ്റ് അക്കൗണ്ടും' ഉണ്ടാകാമോ?

ഇല്ല, ബി‌എസ്‌ബി‌ഡി‌എ ഉപഭോക്താവിന് ഒരേ ബാങ്കിൽ മറ്റൊരു സേവിംഗ്സ് ബാങ്ക് അക്കൗണ്ട് ഉണ്ടായിരിക്കരുത്. ലളിതമായ കെ‌വൈ‌സി മാനദണ്ഡങ്ങളുടെ അടിസ്ഥാനത്തിൽ 'ബേസിക് സേവിംഗ്സ് ബാങ്ക് ഡെപ്പോസിറ്റ് അക്കൗണ്ട്' തുറക്കുകയാണെങ്കിൽ, അക്കൗണ്ട് ഒരു 'സ്മാൾ അക്കൗണ്ട്' ആയി കണക്കാക്കുകയും 'കെ‌വൈ‌സി മാനദണ്ഡങ്ങൾ / എ‌എം‌എൽ മാനദണ്ഡങ്ങൾ / സാമ്പത്തിക ഭീകരവാദത്തിനെതിരെ പോരാടൽ (സി.എഫ്.ടി) / പി.എം.എൽ.എ 2002 പ്രകാരം ബാങ്കുകളുടെ ബാധ്യത എന്നിവ സംബന്ധിച്ച 2012 ജൂലൈ 02 തീയതിയിലെ മാസ്റ്റർ സർക്കുലർ DBOD.AML.BC.No.11/14.01.001/2012-13 ലെ ഖണ്ഡിക 2.7 ൽ സൂചിപ്പിച്ചിരിക്കുന്ന നിബന്ധനകൾക്ക് വിധേയമാവുകയും ചെയ്യും.

10. Do all bank branches in India provide RTGS service? How can a remitting customer know whether the bank branch of the beneficiary accepts remittance through RTGS? +

Ans. For a funds transfer to go through RTGS, both the sending bank branch and the receiving bank branch need to be RTGS enabled. Presently, there are more than 1,60,000 RTGS enabled bank branches, the list of which is available on the RBI website at the link https://rbi.org.in/Scripts/Bs_viewRTGS.aspx?Category=5. The list is updated on a fortnightly basis.

10. എന്താണ് ഓൺ-അസ്, ഓഫ്-അസ് ഇടപാട്? +

ഉത്തരം. കാർഡ് നൽകുന്ന ബാങ്കിന്‍റെ എടിഎമ്മിൽ നടത്തുന്ന ഒരു ഇടപാടിനെ ഓൺ-അസ് ഇടപാട് എന്ന് വിളിക്കുന്നു. കാർഡ് നൽകുന്ന ബാങ്കിൽ നിന്ന് വ്യത്യസ്തമായ ബാങ്കിന്‍റെ എടിഎമ്മിൽ നടത്തുന്ന ഒരു ഇടപാടിനെ അല്ലെങ്കിൽ ഡബ്ല്യുഎൽ‌എയിലെ ഒരു ഇടപാടിനെ ഓഫ്-അസ് ഇടപാട് എന്ന് വിളിക്കുന്നു. ഉദാഹരണത്തിന്, ബാങ്ക് എ നൽകിയ ഒരു കാർഡ് ബാങ്ക് എ യുടെ എടിഎമ്മിൽ ഉപയോഗിച്ചിട്ടുണ്ടെങ്കിൽ, അത് ഓൺ-അസ് ഇടപാടാണ്; ബാങ്ക് എ നൽകിയ കാർഡ് ഒരു ഡബ്ല്യുഎൽ‌എയിലോ ബാങ്ക് ബി യുടെ എടിഎമ്മിലോ ഉപയോഗിക്കുന്നുവെങ്കിൽ, അത് ഒരു ഓഫ്-അസ് ഇടപാടാണ്.

10. Are the additional provisions prescribed under the Resolution Framework to be treated as specific provisions to be maintained or as general provisions that would partly qualify for inclusion as Tier 2 capital? +

The various additional provisions prescribed under the Resolution Framework are specific provisions to be maintained in respect of each exposure under consideration.

Q.11. Will beneficiaries be intimated of credits afforded to their account under the ECS Credit Scheme?

Ans : It is the responsibility of the user institution to communicate to the beneficiary the details of credit that is being afforded to his / her account, indicating the proposed date of credit, amount and related particulars of the payment. Destination banks have been advised to ensure that the pass books / statements given to the beneficiary account holders reflect particulars of the transaction / credit provided by the ECS user institutions. The beneficiaries can match the entries in the passbook / account statement with the advice received by them from the User Institutions. Many banks also give mobile alerts / messages to customers after credit of such funds to accounts.

11. പണമോ ഇലക്‌ട്രോണിക് മാർഗമോ വഴി പിപിഐ ലോഡ് ചെയ്യുന്നതിന് എന്തെങ്കിലും പരിധിയുണ്ടോ? +

ഉത്തരം. ഉണ്ട്. പി‌പി‌ഐകളുടെ ക്യാഷ് ലോഡിംഗ് പ്രതിമാസം `50,000/- ആയി പരിമിതപ്പെടുത്തിയിരിക്കുന്നു. ഇലക്ട്രോണിക് / ഓൺ‌ലൈൻ മാർഗങ്ങളിലൂടെ പി‌പി‌ഐ ലോഡ് ചെയ്യുന്നതിനുള്ള പരിധി പി‌പി‌ഐയുടെ മൊത്തത്തിലുള്ള പരിധിക്ക് വിധേയമാണ്.

11. എന്തെല്ലാം നിബന്ധനകളാണ് ബി‌എസ്‌ബി‌ഡി‌എ-സ്മാൾ അക്കൗണ്ട് ’ആയി കണക്കാക്കേണ്ട അക്കൗണ്ടുകൾ‌ക്കായി നിശ്ചിതപ്പെടുത്തിയിട്ടുള്ളത്‌?

2010 ഡിസംബർ 16 ലെ ഇന്ത്യാ സർക്കാർ വിജ്ഞാപനത്തിന്‍റെ അടിസ്ഥാനത്തിൽ ബിഎസ്ബിഡിഎ-സ്മാൾ അക്കൗണ്ടുകൾ ഇനിപ്പറയുന്ന വ്യവസ്ഥകൾക്ക് വിധേയമായിരിക്കും:

അത്തരം അക്കൗണ്ടുകളില്‍ ഒരു വർഷത്തിലെ മൊത്തം ക്രെഡിറ്റുകൾ ഒരു ലക്ഷം രൂപയിൽ കൂടരുത്.
അക്കൗണ്ടിലെ പരമാവധി ബാലൻസ് ഒരു സമയത്തും അമ്പതിനായിരം രൂപയിൽ കൂടരുത്
ഒരു മാസത്തിലെ പണം പിൻവലിക്കൽ, കൈമാറ്റം എന്നിവയിലൂടെയുള്ള മൊത്തം ഡെബിറ്റുകൾ പതിനായിരം രൂപ കവിയരുത്
സാധാരണ കെ‌വൈ‌സി ഔപചാരികതകൾ പൂർത്തിയാക്കാതെ സ്മാൾ അക്കൗണ്ടുകളിലേക്ക് വിദേശ പണമടയ്ക്കൽ ക്രെഡിറ്റ് ചെയ്യാൻ കഴിയില്ല
സ്മാൾ അക്കൗണ്ടുകൾ തുടക്കത്തിൽ 12 മാസത്തേക്ക് സാധുതയുള്ളതാണ് എന്നാല്‍ ഔദ്യോഗികമായി സാധുവായ ഒരു പ്രമാണത്തിന് അപേക്ഷിച്ചതിന്‍റെ തെളിവ് നൽകിയാൽ അതിന്‍റെ സാധുത മറ്റൊരു 12 മാസം കൂടി നീട്ടിക്കിട്ടാം.
സ്മാൾ അക്കൗണ്ടുകൾ സിബിഎസ് ലിങ്ക് ചെയ്ത ബാങ്കുകളുടെ ശാഖകളിലോ അല്ലെങ്കിൽ വ്യവസ്ഥകളുടെ നിറവേറ്റല്‍ സ്വമേധയാ നിരീക്ഷിക്കാൻ കഴിയുന്ന അത്തരം ബ്രാഞ്ചുകളിലോ മാത്രമേ തുറക്കാൻ കഴിയൂ

11. What if someone needs more than ₹20,000/- cash for business or other purposes? +

Deposit into accounts can be made without restrictions. The ₹2000 banknotes can be deposited into bank accounts and cash requirements can be drawn thereafter, against these deposits.

11. Can the authorised non-bank PSPs continue to maintain accounts with bank/s even after becoming member of CPS? How do authorised non-bank PSPs safeguard customer funds? +

Ans. Yes. It shall be in order for such non-bank PSPs to effect funds transfer from their current account with RBI to current accounts maintained with commercial banks for taking care of their routine payments. The current account of RBI shall not be used therefor.

Further, extant instructions for non-bank PPI issuers on maintenance of escrow account/s with scheduled commercial bank(s) shall continue to apply. Card networks shall not be allowed to use the RBI current account for their settlement guarantee and related activities.

Q 11: How will the exchange rate be determined?

Answer: Exchange rate between the currencies of the two trading partner countries will be market determined.

11. How will the FCNR (B) deposits mobilised in currencies other than US Dollars be taken into account for the purpose of entering into swap with RBI ? +

For FCNR (B) deposits mobilized in permissible foreign currencies other than US Dollar, banks may arrive at the equivalent dollar amount eligible to be swapped by converting the same at the prevailing market rates on the day of the swap deal. Banks may follow a consistent policy as far as conversion is concerned and should maintain a proper documentation (audit trails) of the procedure followed for such conversions.

Q 11. Is there any specific reason for including a dedicated mechanism for redressal of recovery related grievances when there is already a customer grievance redress mechanism? +

Ans. The purpose of having a dedicated redress mechanism for recovery related grievances is that these grievances should be promptly addressed. Treating (clubbing) them as (with) other complaints (e.g., operational issues) may result in delayed action. However, this does not imply that a separate redress mechanism for recovery related grievances is being mandated. REs can restructure/ re-organise the existing customer grievance redress mechanism to identify and promptly address recovery related grievances.

11. Query: Can a depositor close the deposit before the minimum lock-in period? +

Response: In case of STBD, the corresponding provisions will be as determined by designated banks. In case of MTGD or LTGD deposits, premature closure before the minimum lock-in period is available in case of death of depositor or default of loan taken against MLTGD certificate. The applicable interest rates are detailed in para 2.2.2. (f) and 2.2.2. (g) of the Master Directions – Gold Monetization Scheme, 2015.

11. If a customer desires to see the physical cheque issued by him for any reason, what are the options available? +

Under CTS the physical cheques are retained at the presenting bank and do not move to the paying banks. In case a customer desires, banks can provide images of cheques duly certified/authenticated. In case, however, a customer desires to see / get the physical cheque, it would need to be sourced from the presenting bank, for which a request has to be made to his / her bank. An element of cost / charge may also be involved for the purpose. To meet legal requirements, the presenting banks which truncates the cheques need to preserve the physical instruments for a period of 10 years.

11. Which are the authorised banks? +

The authorised banks are SBI & Associates, Nationalised Banks, HDFC Bank, ICICI Bank, and Axis Bank.

11. Query What are the conditions stipulated for accounts which are additionally to be treated as ‘BSBDA-Small Account’? +

Response

As notified in terms of Govt. of India notification dated December 16, 2010, BSBDA-Small Accounts would be subject to the following conditions:

i. Total credits in such accounts should not exceed one lakh rupees in a year.

ii. Maximum balance in the account should not exceed fifty thousand rupees at any time

iii. The total of debits by way of cash withdrawals and transfers will not exceed ten thousand rupees in a month

iv. Foreign remittances cannot be credited to Small Accounts without completing normal KYC formalities

v. Small accounts are valid for a period of 12 months initially which may be extended by another 12 months if the person provides proof of having applied for an Officially Valid Document.

vi. Small Accounts can only be opened at CBS linked branches of banks or at such branches where it is possible to manually monitor the fulfillments of the conditions

Q.11. Whether for closure of additional office, the same procedures as mentioned in ‘Closure of BO/LO/PO’ need to be adhered to? +

Ans. Yes

11. Is there any limit on the amount of compensation that the Ombudsman can sanction ? +

The compensation amount, if any, which can be awarded by the Ombudsman, for any loss suffered by the complainant, is limited to the amount arising directly out of the act or omission or commission of the System Participant, or two million rupees whichever is lower. The compensation shall be over and above the disputed amount.

These FAQs are issued by the Reserve Bank of India (hereinafter referred to as “Bank”) for information and general guidance purposes only. The Bank will not be held responsible for actions taken and / or decisions made on the basis of the same. For clarifications or interpretations, if any, one may be guided by the relevant circulars, guidelines and notifications issued from time to time by the Bank.

11. How would this be ensured ? +

The bank or PD through whom the investor bids will obtain and keep on record an undertaking to the effect that the investor is making only a single bid.Auction Process

11. Whether any authorisation is required to set up and operate a TReDS platform ? +

Ans. Yes, authorisation is required to be obtained from RBI under the Payment and Settlement Systems (PSS) Act, 2007.

11. Is there any limit on the amount of compensation as specified in an Award ? +

The compensation amount, if any, which can be awarded by the NBFC Ombudsman, for any loss suffered by the complainant, is limited to the amount arising directly out of the act or omission of the NBFC or rupees one million, whichever is lower.

11. Can each member of my family buy 4Kg in their own name? +

Yes, each family member can buy the bonds in his/her own name if they satisfy the eligibility criteria as defined at Q No.4.

.11. Will beneficiaries be intimated of credits afforded to their account under the ECS Credit Scheme? +

It is the responsibility of the user institution to communicate to the beneficiary the details of credit that is being afforded to his / her account, indicating the proposed date of credit, amount and related particulars of the payment. Destination banks have been advised to ensure that the pass books / statements given to the beneficiary account holders reflect particulars of the transaction / credit provided by the ECS user institutions. The beneficiaries can match the entries in the passbook / account statement with the advice received by them from the User Institutions. Many banks also give mobile alerts / messages to customers after credit of such funds to accounts.

Q 11. Who is permitted to hold International Credit Card (ICC) and International Debit Card (IDC) for undertaking foreign exchange transactions? +

Ans. Banks authorised to deal in foreign exchange are permitted to issue International Debit Cards (IDCs) which can be used by a resident individual for drawing cash or making payment to a merchant establishment overseas during his visit abroad. IDCs can be used only for permissible current account transactions and the usage of IDCs shall be within the LRS limit.

AD banks can also issue Store Value Card/Charge Card/Smart Card to residents traveling on private/business visit abroad which can be used for making payments at overseas merchant establishments and also for drawing cash from ATM terminals. No prior permission from Reserve Bank is required for issue of such cards. However, the use of such cards is limited to permissible current account transactions and subject to the LRS limit.

Resident individuals maintaining a foreign currency account with an Authorised Dealer in India or a bank abroad, as permissible under extant Foreign Exchange Regulations, are free to obtain International Credit Cards (ICCs) issued by overseas banks and other reputed agencies. The charges incurred against the card either in India or abroad, can be met out of funds held in such foreign currency account/s of the card holder or through remittances, if any, from India only through a bank where the card-holder has a current or savings account. The remittance for this purpose, should also be made directly to the card-issuing agency abroad, and not to a third party. It is also clarified that the applicable credit limit will be the limit fixed by the card issuing banks. There is no monetary ceiling fixed by the RBI for remittances, if any, under this facility. The LRS limit shall not apply to the use of ICC for making payment by a person towards meeting expenses while such person is on a visit outside India.

Use of ICCs/ IDCs can be made for travel abroad in connection with various purposes and for making personal payments like subscription to foreign journals, internet subscription, etc. However, use of ICCs/IDCs is NOT permitted for prohibited transactions indicated in Schedule 1 of FEM (CAT) Amendment Rules 2015 such as purchase of lottery tickets, banned magazines etc.

Use of these instruments for payment in foreign exchange in Nepal and Bhutan is not permitted.

11. How will the non-competitive bidder know the modalities of payment? +

Modalities for obtaining payment from clients towards the cost of securities, accrued interest, wherever applicable and commission will have to be worked out by the aggregator or facilitator and clearly stated in the contract made for the purpose with the client

11. Are bi-lateral arrangements between bank / non-banks in India and those in Nepal covered under INRF Scheme? +

Ans: No. The bilateral arrangements between banks / non-banks to handle cross-border transactions between India and Nepal are not covered under guidelines of the INRF Scheme. The INRF Scheme exclusively uses NEFT ecosystem for such remittance to Nepal and as such all NEFT enabled bank-branches are already covered under Scheme.

11. Can the bank deduct the amount of dues payable by the depositor ? +

Yes. Banks have the right to set off their dues from the amount of deposits as on cut off date. The deposit insurance is available after netting of such dues.

Q.11 Are all eligible transactions between member countries required to be settled through the ACU? +

Ans. Yes. Except the transactions mentioned at Q.10 above. However, trade transactions with Myanmar may be settled in any freely convertible currency, in addition to the ACU mechanism. Further, with effect from July 1, 2016, all eligible current account transactions including trade transactions in “Euro” are permitted to be settled outside the ACU mechanism till further notice.

11. How much foreign exchange can be purchased in foreign currency notes while buying exchange for travel abroad? +

Travellers are allowed to purchase foreign currency notes/coins only up to USD 2000. Balance amount can be taken in the form of traveller’s cheque or banker’s draft. Exceptions to this are (a) travellers proceeding to Iraq and Libya can draw foreign exchange in the form of foreign currency notes and coins not exceeding US$ 5000 or its equivalent; (b) travellers proceeding to the Islamic Republic of Iran, Russian Federation and other Republics of Commonwealth of Independent States can draw entire foreign exchange released in form of foreign currency notes or coins.

Q11. Can a Foreign Portfolio Investor or a Foreign Venture Capital Investor open a foreign currency account in India ? +

Answer: Yes, a Foreign Portfolio Investor or a Foreign Venture Capital Investor, both registered with the Securities and Exchange Board of India (SEBI) under the relevant SEBI regulations can open and maintain a non-interest bearing foreign currency account for the purpose of making investment in accordance with Foreign Exchange Management (Non-Debt Instrument) Rules, 2019.

11. What are the essential details required for remitting funds through NEFT system? +

Ans: The essential elements of beneficiary's identification are:

Beneficiary's Name
Beneficiary's Branch Name
Beneficiary's Bank Name
Beneficiary's Account Type
Beneficiary's Account No.
Beneficiary's Branch IFSC
Sender and Beneficiary Legal Entity Identifier (for eligible transactions)

11. What are the money changing facilities presently available in India? +

At present, the conversion of foreign currency or travellers' cheques designated in foreign currency into Indian Rupees and vice versa is possible through AD Category-I banks, ADs Category-II and Full Fledged Money Changers (FFMCs). Further, AD Category-I banks, ADs Category-II and FFMCs may appoint franchisees (also known as agents) to undertake purchase of foreign currency.

11. Is there any cost involved in filing complaints with Banking Ombudsman ? +

No. The Banking Ombudsman does not charge any fee for filing and resolving customers’ complaints.

11. Whether additional interest admissible to bank's staff can be paid on the compensation awarded by the court to minor child and deposited in the joint name of minor child and parent ? +

No. As the money belongs to the minor child and not the bank's staff, additional interest cannot be paid.

11. Who is deemed to be the holder of the Government securities in CSGL account? +

A CSGL account holder shall be deemed to be the holder of the securities held in the respective account with RBI, however, the constituents i.e. GAHs, as the beneficial owners of the Government security held therein, shall be entitled to claim from the CSGL account holder all the benefits and be subjected to all the liabilities in respect of the Government securities held in the CSGL account.

11. WHETHER ANY TIMELINES HAVE BEEN RECOMMENDED FOR ADF? +

The total time for complete implementation of ADF would depend on the cluster in which the bank places itself after making an assessment of Process and Technology maturity as per the methodology given in the Approach Paper. However, it is expected that the banks with advanced IT systems and experience of working in computerised environment would take the lead and implement ADF in shortest possible time, say, even 2-3 months. In general, banks should strive to meet the objectives within shortest possible timelines.

Q.11. Is it mandatory to have a public company as a part of the Promoter Group? +

The requirement is that the companies in the Promoter Group in which the public hold not less than 51 per cent of the voting equity shares shall hold not less than 51 per cent of the total voting equity shares of the NOFHC.[ para 2 (C) (ii) (b) of the guidelines]

11. Can the deposit be made partly by cash and partly by cheque or other means? +

Yes, deposit may be made in combination of more than one means of payment, at a single time. However, the effective date of deposit would be the date of realization of the total amount of deposit at the bank’s end

11. Where can I get more information on this scheme/ Act ? +

Further information is available on our website (www.rbi.org.in) and the website of the Government of India (www.finmin.nic.in)

Also see:

All You wanted to know from RBI about: Withdrawal of Legal Tender Status of ₹ 500 and ₹ 1000 Notes

11. What are the charges for this application? +

The system is owned by RBI. There are no charges for use of this application by clients. However, since all trades are to be guaranteed and settled by CCIL, PMs will have to pay settlement charges and also continue to deposit adequate margin on behalf of their clients to CCIL.

Q11. How will IDF- NBFCs and IDF-MFs raise resources? +

Ans : IDF-NBFCs will raise resources through issue of either Rupee or Dollar denominated bonds of minimum 5 year maturity. IDF-MFs will raise resources through issue of units of MFs.

11. Funds are credited to the customers’ accounts after the cooling period though funds are resting in the Nostro accounts of collecting banks during the period. Is there any compensation for customers? +

Yes. Banks have been advised to pay interest on the amount of cheque on a value-date concept from the date of sighting of credit in their Nostro accounts till such time the credit is actually afforded to customers’ accounts. Interest shall be paid minimum at the Savings Bank rate calculated on the amount of proceeds credited to the customers’ accounts.

Q.11. Can the applicant authorise another person to attend the personal hearing? +

Ans. Yes, another person may be authorised by the applicant to attend the personal hearing on his behalf but only with proper written authority. It has to be ensured that the person appearing on behalf of the applicant is conversant with the nature of contravention applied for. However, the Reserve Bank encourages the applicant to appear directly for the personal hearing rather than being represented/ accompanied by legal experts/consultants, etc. as the compounding is only for admitted contraventions.