Power to exempt
Section 30 of the Payment and Settlement Systems Act, 2007 deals with power to exempt. Notwithstanding anything contained in section 26, if a contravention or default of the nature referred to in sub-section (2) [or sub-section (3)] 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 The Act came into force on 12 Aug 2008.
30. Power of Reserve Bank to impose 1[penalties].--(1) Notwithstanding anything contained in section 26, if a contravention or default of the nature referred to in sub-section (2) 2[or sub-section (3)] 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 3[ten 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 twentyfive thousand rupees for every day after the first during which the contravention or default continues.
(2) For the purpose of imposing penalty under sub-section (1), the Reserve Bank shall serve a notice on the defaulter requiring him to show cause why the amount specified in the notice should not be imposed as a penalty and a reasonable opportunity of being heard shall also be given to such defaulter.
(3) Any penalty imposed by the Reserve Bank under this section shall be payable within a period of thirty days from the date on which notice issued by the Reserve Bank demanding payment of the sum is served on the defaulter and, in the event of failure of the person to pay the sum within such period, may be recovered on a direction made by the principal civil court having jurisdiction in the area where the registered office of the defaulter company or the official business of the person is situated:
Provided that no such direction shall be made, except on an application made by an officer of the Reserve Bank authorised by it in this behalf.
(4) The Reserve Bank may recover the amount of penalty by debiting the current account, if any, of the defaulter or by liquidating the securities held to the credit of the defaulter or in accordance with the provisions of this Act.
(5) The court which makes a direction under sub-section (3) shall issue a certificate specifying the sum payable by the defaulter and every such certificate shall be enforceable in the same manner as it were a decree made by the court in a civil suit.
(6) Where any complaint has been filed against any person in any court in respect of the contravention or default of the nature referred to in sub-section (2), or, as the case may be, sub-section (4) of section 26, then, no proceeding for the imposition of any penalty on the person shall be taken under this section.
Section 30, The Payment and Settlement Systems Act, 2007 (Act 51 of 2007).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
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Referred to by 2
Questions about Section 30
What does Section 30 of the Payment and Settlement Systems Act deal with?
Section 30 of the Payment and Settlement Systems Act is headed "Power to exempt". 30. Power of Reserve Bank to impose [penalties].--(1) Notwithstanding anything contained in section 26, if a contravention or default of the nature referred to in sub-section (2) [or sub-section (3)] or sub-section (6) of section 26, as the case may be, the Reserve Bank may impose on the person cont
How do I find court cases under Section 30 of the Payment and Settlement Systems Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Payment and Settlement Systems Act 30, section 30 Payment and Settlement Systems Act, section 30 of the Payment and Settlement Systems Act. People searching for it also type section 30 of the payment and settlement systems act 2007. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 30 of the Payment and Settlement Systems Act, and has it changed?
Its own text turns on section 26 (Penalties), so none of them can safely be read on its own. 2 other provisions in this corpus refer back to it.
When did Section 30 of the Payment and Settlement Systems Act come into force?
Section 30 of the Payment and Settlement Systems Act, cited as Payment and Settlement Systems Act 30, came into force on 12 Aug 2008, having been enacted on 20 Dec 2007. It is in force as at the date shown on this page.
Other sections of this Act
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 18 Oct 2026. This page is not a substitute for legal advice.