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

Q89: Under the Compounding of Contraventions Rules, the RBI can compound all of the following types of contraventions EXCEPT:

A
Delay in reporting Inward Remittance for issuance of shares.
B
Contraventions involving hawala transactions or terror financing.
C
Delay in submission of Annual Performance Reports (APR) by an Indian Party.
D
Excess payment of consultancy fees beyond LRS limits (if unintentional).
✅ Correct Answer: B
Option B cannot be compounded.
Concept Definition: Non-Compoundable Offences.
Structural Breakdown: Serious Offences: Contraventions suspected of Money Laundering (PMLA), Terror Financing, or affecting the "sovereignty and integrity of the nation" are strictly non-compoundable.
These are referred to the ED for criminal/rigorous investigation.
Technical Offences: Options A, C, and D are procedural/administrative in nature and are the primary candidates for compounding.