'There are monetary limits for each authority to compound the offence' Enumerate the powers of Reserve Bank of India and Enforcement Directorate to compound contraventions.

Power of Reserve Bank to Compound Contravention According to the Foreign Exchange Management Act, 1999, read with Rule 4 of the Foreign Exchange (Compounding Proceedings) Rules, 2000, if any person contravenes any provisions of the said Act except clause (a) of Section 3 of the Act: (a) in case where the sum involved in such contravention is ten lakhs rupees or below, by the Assistant General Manager of the Reserve Bank of India; (b) in case where the sum involved in such contravention is more than rupees ten lakhs but less than rupees forty lakhs, by the Deputy General Manager of Reserve Bank of India; (c) in case where the sum involved in the contravention is rupees forty lakhs or more but less than rupees one hundred lakhs by the General Manager of Reserve Bank of India; (d) in case the sum involved in such contravention is rupees one hundred lakhs or more, by the Chief General Manager of the Reserve Bank of India; It may be noted that a contravention shall be compounded only if the amount involved in such contravention is quantifiable. Power of Enforcement Directorate to Compound Contravention According to Rule 5 of the Foreign Exchange (Compounding Proceedings) Rules, 2000, if any person contravenes provisions of Section 3(a) of Foreign Exchange Management Act. (a) in case where the sum involved in such contravention is five lakhs rupees or below, by the Deputy Director of the Directorate of Enforcement; (b) in case where the sum involved in such contravention is more than rupees five lakhs but less than rupees ten lakhs, by the Additional Director of the Directorate of Enforcement; (c) in case where the sum involved in such contravention is rupees ten lakhs or more but less than fifty lakhs rupees by the Special Director of the Directorate of Enforcement; (d) in case where the sum involved in the contravention is rupees fifty lakhs or more but less than one crore rupees by Special Director with Deputy Legal Adviser of the Directorate of Enforcement; (e) in case the sum involved in such contravention is one crore rupees or more, by the Director of Enforcement with Special Director of the Enforcement Directorate. Provided further that no contravention shall be compounded unless the amount involved in such contravention is quantifiable.