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The Reserve Bank of India (RBI) created enhanced regulatory procedures to enforce fiscal penalties and administer offense compounds for Payment and Settlement Systems (PSS) Act, 2007 violations. The new model seeks to simplify enforcement procedures while securing enhanced payments standards from bank and payment system operating entities.
The revised regulatory framework provides specific penalties for three offenses including unauthorized operation of a payment system and disclosure of forbidden information and non-payment of established penalties before their due dates.
Increased Monetary Penalties Under New Framework
The new guidelines grant reinforced powers to the RBI for exacting increased penalties for breaking the PSS Act.