The Reserve Bank of India (RBI) on Friday changed some of the norms for penalties on payment system operators for non compliance of the regulations. This was to ensure the safety and security to various stakeholders, including customers.
Due to the advanced technology, availability of payment products, entry of more nonbank players, dis-intermediation, and significant surge in turnover, etc there were many developments in the payment landscape system too.
“To ensure that the payment systems are safe and secure and the various stakeholders conform to regulatory requirements, on review it has been decided to revise the process of levy of penalty on payment system operators by the Reserve Bank of India,” the RBI said while issuing the revised framework.
The penality amount would defer depending on the impact of the non compliance.
“The amount of monetary penalty for a contravention shall not exceed ₹5 lakh or double the amount of contravention, whichever is higher, where such amount is quantifiable,” it said.
For non-quantifiable contravention, the maximum penalty shall be ₹5 lakh per contravention.