Penalties FEMA Section 13 — Penalty for Contravention
FEMA Section 13 — Penalty for Contravention
FEMA 1999 — 13
Penalty up to 3× the amount involved in the contravention (where quantifiable) or ₹2,00,000 (where not quantifiable) + ₹5,000/day continuing default. Compounding available under s.15.
The Penalty
Up to 3× amount involved OR ₹2,00,000 + ₹5,000/day continuing
- Cap
- 3× the contravention amount
- Calculation base
- Contravention amount (e.g. late FC-GPR, delayed FLA, unreported ODI, non-conversion of CCPS)
- Period
- Adjudication; compounding closes proceedings.
When does this apply?
Any breach of FEMA / rules / regulations / RBI directions.
Calculate this amount
This estimate applies only the rate and caps published in the authored rule for this page.
₹0
Worked examples
| Scenario | Calculation | Result |
|---|---|---|
| Late FC-GPR reporting ₹5 crore FDI | Late Submission Fee (LSF) — compoundable at RBI-notified matrix | ₹0 |
| Serious contravention: unreported ODI ₹2 crore | Up to 3× ₹2 crore = ₹6 crore max | ₹6,00,00,000 |
How it is levied
ED / RBI adjudicates. Most inadvertent defaults are compounded under s.15 via the RBI Compounding Directorate at a fraction of the s.13 exposure.
⚠ VERIFY
For minor reporting defaults, the Late Submission Fee (LSF) matrix on the RBI FIRMS system usually resolves the exposure — confirm the current LSF schedule (updated periodically).