Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q29: The Foreign Exchange (Compounding Proceedings) Rules, 2024 also revised the application fee structure. What is the new fee required to be paid along with the application for compounding?

A
₹5,000 flat.
B
₹10,000 plus GST.
C
₹25,000 flat.
D
No fee is required for startups.
✅ Correct Answer: B
Old Fee: Under the 2000 Rules, the fee was a flat demand draft of ₹5,000.
New Fee (2024): The rules raised the application fee to ₹10,000 plus applicable Goods and Services Tax (GST). Digital Mode: Crucially, the new rules also explicitly allow payment via NEFT, RTGS, or other electronic modes, removing the archaic requirement for only Demand Drafts.