23. Offences and penalties.—(1) Whoever, in any return or other document or in any information
required or furnished by, or under, or for the purposes of, any provision of this Act, wilfully makes a
statement which is false in any material particular, knowing it to be false, or wilfully omits to make a
material statement, shall be punishable with imprisonment for a term which may extend to one year and
shall also be liable to fine.
(2) Every credit information company or a credit institution or any specified user, wilfully,
performing any act or engaging in any practice, in breach of any of the principles referred to in section 20,
shall be punishable with fine not exceeding one crore rupees.
(3) Any credit information company or credit institution or specified user wilfully providing to any
other credit information company or credit institution or specified user or borrower or client, as the case
may be, credit information which is false in any material particular, knowing it to be false, or wilfully
omits to make a material statement, shall be punishable with fine which may extend to one crore rupees.
(4) Any person who contravenes any provision of this Act or of any rule or order made thereunder, or
obstructs the lawful exercise of any power conferred by or under this Act, or makes default in complying
with any requirement of this Act or of any rule or order made or direction issued thereunder, shall, if no
specific provision is made under this Act for punishment of such contravention, obstruction or default, be
punishable with fine which may extend to one lakh rupees and where a contravention or default is a
continuing one, with a further fine which may extend to five thousand rupees for every day during which
the contravention or default continues.
(5) Where a contravention or default has been committed by a credit information company or credit
institution or specified user, as the case may be, every person who, at the time the contravention or default
was committed, was in charge of, and was responsible to the credit information company or credit
institution or specified user for the conduct of its business, shall be deemed to be guilty of the
contravention or default and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any
punishment provided in this Act if he proves that the contravention or default was committed without his
knowledge or that he exercised all due diligence to prevent the contravention or default.
(6) Notwithstanding anything contained in sub-section (5), where a contravention or default has been
committed by a credit information company or credit institution or specified user, as the case may be, and
it is proved that the same was committed with the consent or connivance of, or is attributable to any gross
negligence on the part of its chairperson, managing director, any other director, manager, secretary or
other officer of the credit information company or the credit institution, such chairperson, managing
director, any other director, manager, secretary or other officer shall also be deemed to be guilty of that
contravention or default and shall be liable to be proceeded against and punished accordingly.
Explanation.—For the purposes of this section,—
(a) “company” means any body corporate and includes a firm or other association of individual,
and
(b) “director”, in relation to a firm, means a partner in the firm.
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24. Cognizance of offences.—(1) No court shall take cognizance of any offence committed by a
member of a credit information company and punishable under section 23 except upon a complaint in
writing made by an officer of the credit information company generally or specially authorised in writing
in this behalf by the credit information company or if so directed by the Reserve Bank so to do and no
court other than that of a Metropolitan Magistrate or a Judicial Magistrate of the first class or any court
superior thereto shall try any such offence.
Explanation.—For the purposes of this sub-section, “member of a credit information company” shall
mean a member referred to in section 15.
(2) No court shall take cognizance of any offence committed by a credit information company
punishable under section 23 except upon a complaint in writing made by an officer of the Reserve Bank
generally or specially authorised in writing in this behalf by the Reserve Bank and no court other than that
of a Metropolitan Magistrate or a Judicial Magistrate of the first class or any court superior thereto shall
try any such offence.
25. Power of Reserve Bank to impose penalty.—(1) Notwithstanding anything contained in section
23, if a contravention or default of the nature referred to in sub-section (2) of section 22 or sub-section (2)
or sub-section (3) or sub-section (4) of section 23, as the case may be, is made by a credit information
company or a credit institution then, the Reserve Bank may impose on such credit information company
or credit institution—
(i) where the contravention is of the nature referred to in sub-section (2) of section 22, a penalty
not exceeding one lakh rupees;
(ii) where the contravention is of the nature referred to in sub-section (2) or sub-section (3) of
section 23, a penalty not exceeding one crore rupees;
(iii) where the contravention is of the nature referred to in sub-section (4) of section 23, a penalty
not exceeding one lakh rupees and where such contravention or default is continuing one, a further
penalty which may extend to five thousand rupees for every day, after the first, during which the
contravention or default continues.
(2) For the purpose of adjudging the penalty under sub-section (1), the Reserve Bank shall serve
notice on credit information company or credit institution or specified user, as the case may be, requiring
it to show cause as to why the amount mentioned in the notice should not be imposed as penalty and a
reasonable opportunity of being heard shall also be given to such credit information company or credit
institution or specified user, as the case may be.
(3) No complaint shall be filed against credit information company or credit institution or specified
user, as the case may be, in any court of law in respect of any contravention or default in respect of which
any penalty has been imposed by the Reserve Bank under this section.
(4) Any penalty imposed by the Reserve Bank under this Act shall be payable within a period of
fourteen days from the date on which notice issued by the Reserve Bank demanding payment of the sum
is served on the credit information company or credit institution or specified user, as the case may be, and
in the event of failure of such credit information company or credit institution or specified user to pay the
sum within such period, may be levied on a direction made by the principal civil court having jurisdiction
in the area where the registered office of the credit information company or credit institution or specified
user, being a company, is situated and in case of credit institution incorporated outside India, where its
principal place of business in India is situated:
Provided that such direction under this sub-section shall be made only upon an application made in
this behalf to the court by the Reserve Bank.
(5) The court which makes a direction under sub-section (4) shall issue a certificate mentioning
therein the sum payable by a credit information company or credit institution or specified user, as the case
may be, and every such certificate shall be enforceable in the same manner as if it were a decree made by
the court in a civil suit.
(6) Where any complaint has been filed against credit information company or credit institution or
specified user, as the case may be, in any court in respect of the contravention or default of the nature
referred to in sub-section (2) of section 22 or sub-section (2) or sub-section (3) or sub-section (4) of
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section 23, then, no proceedings for the imposition of any penalty on the credit information company or
credit institution or specified user shall be taken under this section.
26. Application of fines.—A court imposing any fine under this Act may direct that the whole or any
part thereof shall be applied in or towards payment of the costs of the proceedings, or for such purposes as
may be directed by the court.