‘罚款’ (fá kuǎn) is a compound noun meaning 'fine' — a monetary penalty imposed by an authority for breaking a rule or law. The first character 罚 (fá) means 'to punish' or 'to penalize', and the second character 款 (kuǎn) literally means 'funds' or 'money', so together they convey 'punishment money'. This term is used almost exclusively in formal, administrative, or legal contexts — such as traffic violations, regulatory breaches, or public health infractions.

You’ll commonly hear it in government announcements, police notices, or official warnings. Unlike informal words like 罚 (fá) alone, 罚款 always refers specifically to a required cash payment, not other forms of punishment like detention or community service. It’s neutral in register but carries serious connotations because it signals an official sanction — never used playfully or casually.