Framework for penalising on payment issues released by RBI
Q. RBI has released a framework for penalising on payment issues. Fines have been fixed up to which amount?- Published on 21 Oct 16a. INR 50 lakhs
b. INR 75 lakhs
c. INR 1 crore
d. INR 1.5 crore
ANSWER: INR 1 crore
RBI came out with a framework for penalising banks and payment systems operators for offences under the Payment and Settlement Systems Act with fines of up to INR 1 crore
- A framework has been put up for imposition of penalty/fine under section 30 of the PSS Act and compounding contraventions or offences under section 31 of the PSS Act
- Contravention of the provisions of the PSS act, non compliance of directions or orders made thereunder and violation of terms and conditions of authorisation will result in fines.
- Fines will be based on nature of offences or contraventions and there will be minimum penalty of INR 5 lakh which can go to INR 1 crore
- Entities which have been made to pay the fine will disclose the same in their annual financial statement
- RBI will also make the penalty public
- RBI will directly debit the current account while those not having the facility with the central bank will have to deposit the amount into designated RBI account within one week of the issue of written order
- Non payment will be dealt as per provisions of the PSS Act
