Section 33 of PSSA : Section 33: Mode Of Recovery Of Penalty

Explanation using Example

Imagine a scenario where a payment system provider, XYZ Payments Ltd., fails to comply with the operational standards set by the Reserve Bank of India (RBI). As a result, the RBI imposes a penalty on XYZ Payments Ltd. under Section 30 of the Payment and Settlement Systems Act, 2007.

To recover the penalty, the RBI issues a notice to ABC Bank, which owes money to XYZ Payments Ltd. for services rendered. The notice instructs ABC Bank to deduct the penalty amount from the payment due to XYZ Payments Ltd. and to pay that amount directly to the RBI.

ABC Bank is required to comply with this notice and make the payment to the RBI without needing to show any passbook or document that would normally be required for such transaction...

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