RBI Tightens Penalty Norms Under PSS Act

The Reserve Bank of India has increased monetary penalties for violations under the Payment and Settlement Systems Act. The revised framework raises the penalty cap from Rs 5 lakh to Rs 10 lakh or double the involved amount. Continuous violations incur daily penalties. Key contraventions include unauthorized payment system operations.

The Reserve Bank of India (RBI) has introduced stricter norms pertaining to monetary penalties under the Payment and Settlement Systems Act (PSS Act), aiming to streamline enforcement actions.

The revised rules affect payment system operators and banks, highlighting contraventions like operating without authorization, prohibited information disclosures, and failing to meet penalty deadlines.

The maximum penalty has doubled from Rs 5 lakh to Rs 10 lakh or twice the sum involved in the contravention, whichever is higher, thanks to the Jan Vishwas Act. Continuous violators may face penalties up to Rs 25,000 daily.