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Question

Under the Payment and Settlements System Act, Reserve Bank can impose a penalty of ……..on the person contravening or committing default where the amount is quantifiable

A Twice the amount involved in contravention or default Correct Answer Incorrect Answer
B Thrice the amount involved in contravention or default Correct Answer Incorrect Answer
C Four times the amount involved in contravention or default Correct Answer Incorrect Answer
D Five times the amount involved in contravention or default Correct Answer Incorrect Answer
E Six times the amount involved in contravention or default Correct Answer Incorrect Answer

Solution

Section 30 Power of Reserve Bank to impose fines.—(1) Notwithstanding anything contained in section 26, if a contravention or default of the nature referred to in sub-section (2) or sub-section (6) of section 26, as the case may be, the Reserve Bank may impose on the person contravening or committing default a penalty not exceeding five lakh rupees or twice the amount involved in such contravention or default where such amount is quantifiable, whichever is more, and where such contravention or default is a continuing one, a further penalty which may extend to twenty-five thousand rupees for every day after the first during which the contravention or default continues.

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