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Module: General Practice

Q88: The Foreign Exchange (Compounding Proceedings) Rules, 2024 (notified in Sept 2024) introduced significant changes to the compounding process. Which of the following statements is CORRECT under the new rules?

A
The application fee for compounding has been increased to ₹10,000 (plus GST) and can now be paid via NEFT/RTGS.
B
The application fee remains ₹5,000 and must still be paid only via Demand Draft.
C
The power to compound offences has been completely removed from Regional Offices and centralized at the Mumbai Head Office.
D
Compounding is now available for offences involving Money Laundering (PMLA).
✅ Correct Answer: A
Option A is the correct procedural update.
Concept Definition: Procedural Simplification.
Structural Breakdown: Fee Hike: The fee was doubled from ₹5,000 to ₹10,000.
Digital Push: The 2000 Rules required a physical Demand Draft.
The 2024 Rules explicitly allow digital payments (NEFT/RTGS/Online). Delegation: Contrary to Option C, the 2024 Rules increased the delegation.
For example, an Assistant General Manager (AGM) can now compound cases up to ₹60 Lakhs (previously ₹10 Lakhs).
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