CS Executive · Economic, Commercial and Intellectual Property Laws · Overseas Direct Investment
An authorised dealer bank fails to file a return that the Reserve Bank had directed it to file regarding overseas investment remittances. After giving the bank a reasonable opportunity of being heard, what is the maximum penalty the Reserve Bank may impose under Section 11(3) for the basic contravention, apart from any continuing-contravention penalty?
The Reserve Bank may impose a penalty of up to ten thousand rupees on the authorised person after giving a reasonable opportunity of being heard. For continuing contravention, an additional penalty of up to two thousand rupees per day may be levied. The larger Section 13 penalties apply to persons generally.
- ATen thousand rupeesCorrect
- BTwo thousand rupees
- CTwo lakh rupees
- DThrice the sum involved
Explanation
Section 11(3) allows the Reserve Bank, after a reasonable hearing, to penalise an authorised person who contravenes a direction or fails to file a return, with a penalty up to ten thousand rupees. Two thousand rupees is the per-day additional penalty for continuing contravention, not the basic penalty. Two lakh rupees and thrice the sum involved belong to Section 13(1) and apply to persons generally upon adjudication.
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