Banks, payment cos to pay Rs 10 lakh penalty for non-compliance with payment norms

Update: 2025-01-30 17:38 GMT
Banks, payment cos to pay Rs 10 lakh penalty for non-compliance with payment norms
RBI sets a Rs 10 lakh penalty for payment norm violations, with a Rs 25,000 daily fine for continued breaches.
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Mumbai: The Reserve Bank of India (RBI) on Thursday revised the framework for imposing monetary penalty and compounding of offences under the Payment and Settlement Systems Act, 2007.

Under the revised norms, the central bank can impose a penalty not exceeding Rs 10 lakh or twice the amount involved if an entity operates a payment system without authorisation or has inadequate payment system data storage, fails to comply with the terms and conditions subject to which authorisation was issued, wilfully makes a false statement or discloses information which is prohibited and non-complies with the RBI directions.

The other contraventions listed are non-compliance with directions pertaining to maintenance of net worth requirements, non-compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) norms, non-compliance with directions pertaining to maintenance of nodal/ escrow accounts, breach of limits in loading, fund transfer, etc. of prepaid payment instruments (PPIs).

In case such contravention or default is a continuing one, a further penalty of up to Rs 25,000/- for every day after the first during which the contravention or default continues, can also be imposed, said the RBI.

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