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Corporate Laws Central Ministry of Finance Payment and Settlement Systems Act, 2007

Framework for imposing monetary penalty and compounding of offences under the Payment and Settlement Systems Act, 2007

30-Jan-2025 | RBI/2024-2025/108 EFD.CO.No.1/02.08.001/2024-25

RBI has issued a notification specifying the framework for imposing monetary penalty and compounding of offences under the Payment and Settlement Systems Act, 2007, effective from 30th January 2025.

By virtue of this notification, the Framework for imposing monetary penalties and compounding of offenses under the Payment and Settlement Systems Act, 2007 is issued.

Key highlights of the framework -
1. A list of contraventions as specified under Section 26 of the Payment and Settlement Systems Act, 2007 is provided.
2. Contraventions mentioned in Section 26 (1), (3), (4), (5), (6) of the Payment and Settlement Systems Act, 2007 are covered for the purpose of compounding.
3. The following are the designated authorities for the purpose of imposing monetary penalty and compounding of contraventions -
i. Committee comprising three Executive Directors in respect of cases handled by Central Office of Enforcement Department and
ii. Committee comprising Regional Director and two senior officers at the Regional Office of Enforcement Department.
4. The procedure for compounding has also been specified.

Please refer to the attached document for more information.

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