The Reserve Bank releases a framework for penalising banks and payment systems operators for offences under the Payment and Settlement Systems Act, fixing fines of up to Rs 1 crore.
Contravention of provisions of the PSS Act, non-compliance of directions or order made there under and Violations of terms and conditions of authorisation will attract the fines.
The fines will be based on the nature of the offences or contraventions.
There will be a minimum penalty of Rs 5 lakh which can go up to Rs 1 crore.
Entities which have been made to pay a fine will have to disclose the penalties/fines in their Annual Financial Statements for the year. RBI will also make the penalty public.
The Reserve Bank will directly debit their current account, while those not having the facility with the central bank will have to deposit the amount into a designated account of the RBI within one week of the issue of written order.