Under section 13 of the Foreign Exchange Management Act, 1999, where a person contravenes any provision of the Act, the penalty that may be imposed is -

Section 13(1) of the Foreign Exchange Management Act, 1999 provides that if any person contravenes any provision of the Act or any rule, regulation, notification, direction or order issued thereunder, he shall be liable to a penalty up to thrice the sum involved in such contravention where such amount is quantifiable, or up to two lakh rupees where it is not quantifiable, and where the amount is quantifiable the penalty may extend to three times the sum or two lakh rupees, whichever is higher. Section 13(2) adds a further penalty of five thousand rupees for every day during which a continuing contravention continues. Imprisonment is not an automatic consequence of a contravention and no such bare alternative is prescribed. The stated penalty structure is therefore the correct position.