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    Question

    What is the newly assigned penalty under the Payment and

    Settlement Systems Act (PSS Act) for contraventions?
    A ₹5 lakh Correct Answer Incorrect Answer
    B ₹7 lakh Correct Answer Incorrect Answer
    C ₹10 lakh or twice the involved amount, whichever is higher Correct Answer Incorrect Answer
    D ₹50,000 per instance Correct Answer Incorrect Answer
    E ₹2 lakh Correct Answer Incorrect Answer

    Solution

    The Reserve Bank of India (RBI) has revised the penalty framework under the Payment and Settlement Systems Act (PSS Act). The maximum penalty for contraventions such as unauthorized operation of payment systems, disclosure violations, or non-payment of penalties has been increased from ₹5 lakh to ₹10 lakh or twice the amount involved, whichever is higher. Additionally, an extra penalty of ₹25,000 per day may be imposed for ongoing violations.

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