The rules for filing applications for crimes under the Currency Exchange Management Act have been changed

The Finance Ministry on Thursday changed the rules for charging penalties for offences under the Foreign Exchange Management Act (FEMA), raising the limits on the amounts awarded by RBI officials and allowing online payments.

Under the Foreign Exchange (Filing Proceedings) Rules, 2024, the filing fees for filing have been doubled from Rs 5,000 to Rs 10,000 plus GST.

The notification also said that officials in the rank of deputy director general of the RBI can decide to file claims up to Rs 60 lakh, up from Rs 10 lakh earlier.

Similarly, the monetary limits for the rank of Deputy Director General and Director General have been raised to Rs 2.5 million and Rs 5 million, respectively.

The Director General of RBI will be authorised to take decisions on complex cases valued above Rs 50 crore.

The Ministry of Finance in its statement informed that the Foreign Exchange Trading (Filing Proceedings) Regulations, 2024 will replace the regulations issued in 2000.

In line with Finance Minister Nirmala Sitharaman’s announcement in the Union Budget 2024-25 regarding simplification of rules and regulations for foreign investment, the Department of Economic Affairs (DEA), Ministry of Finance today notified the Foreign Exchange (Filing Proceedings) Regulations, 2024.

As part of a broader initiative to streamline and rationalise existing rules and regulations to further facilitate ease of doing business, a comprehensive review of the conduct rules filed in consultation with the Reserve Bank of India has been undertaken, it said.

“The emphasis was placed on introducing regulations to speed up and streamline the processing of submitted applications, introducing digital payment options for application fees and amounts submitted, and focusing on simplifying and rationalizing regulations to eliminate ambiguities and clarify the process,” the Ministry said.

It added that these amendments demonstrate the government’s commitment to promoting “ease of investment” for investors and “ease of doing business” for enterprises.

Nangia Andersen India, Partner – Regulatory, Angali Malhotra said that one of the key updates in the Rules is the significant upward revision of the monetary limits for cumulative violations, with the revised limits delegating greater responsibility to various levels of government. This restructuring dictates that cases are handled more efficiently, reflecting the increased amounts involved in such violations.

“This revamped structure reflects the evolution of both the regulatory environment and payment systems, providing more streamlined and efficient processes for the stakeholders involved,” said Malhotra.