24. Settlement of disputes.—(1) The system provider shall make provision in its rules or regulations
for creation of panel consisting of not less than three system participants other than the system
participants who are parties to the dispute to decide the disputes between system participants in respect of
any matter connected with the operation of the payment system.
(2) Where any dispute in respect of any matter connected with the operation of the payment system
arises between two or more system participants, the system provider shall refer the dispute to the panel
referred to in sub-section (1).
(3) Where any dispute arises between any system participant and the system provider or between
system providers or where any of the system participants is not satisfied with the decision of the panel
referred to in sub-section (1), the dispute shall be referred to the Reserve Bank.
(4) The dispute referred to the Reserve Bank for adjudication under sub-section (3) shall be disposed
of by an officer of the Reserve Bank generally or specially authorised in this behalf and the decision of
the Reserve Bank shall be final and binding.
(5) Where a dispute arises between the Reserve Bank, while acting in its capacity as system provider
or as system participant, and another system provider or system participant, the matter shall be referred to
the Central Government which may authorise an officer not below the rank of Joint Secretary for
settlement of the dispute and the decision of such officer shall be final.
25. Dishonour of electronic funds transfer for insufficiency, etc., of funds in the account.—(1)
Where an electronic funds transfer initiated by a person from an account maintained by him cannot be
executed on the ground that the amount of money standing to the credit of that account is insufficient to
honour the transfer instruction or that it exceeds the amount arranged to be paid from that account by an
agreement made with a bank, such person shall be deemed to have committed an offence and shall,
without prejudice to any other provisions of this Act, be punished with imprisonment for a term which
may extend to two years, or with fine which may extend to twice the amount of the electronic funds
transfer, or with both:
Provided that nothing contained in this section shall apply unless—
(a) the electronic funds transfer was initiated for payment of any amount of money to another
person for the discharge, in whole or in part, of any debt or other liability;
(b) the electronic funds transfer was initiated in accordance with the relevant procedural
guidelines issued by the system provider;
(c) the beneficiary makes a demand for the payment of the said amount of money by giving a
notice in writing to the person initiating the electronic funds transfer within thirty days of the receipt
of information by him from the bank concerned regarding the dishonour of the electronic funds
transfer; and
13
(d) the person initiating the electronic funds transfer fails to make the payment of the said money
to the beneficiary within fifteen days of the receipt of the said notice.
(2) It shall be presumed, unless the contrary is proved, that the electronic funds transfer was initiated
for the discharge, in whole or in part, of any debt or other liability.
(3) It shall not be a defence in a prosecution for an offence under sub-section (1) that the person, who
initiated the electronic funds transfer through an instruction, authorisation, order or agreement, did not
have reason to believe at the time of such instruction, authorisation, order or agreement that the credit of
his account is insufficient to effect the electronic funds transfer.
(4) The Court shall, in respect of every proceeding under this section, on production of a
communication from the bank denoting the dishonour of electronic funds transfer, presume the fact of
dishonour of such electronic funds transfer, unless and until such fact is disproved.
(5) The provisions of Chapter XVII of the Negotiable Instruments Act, 1881 (26 of 1881) shall apply
to the dishonour of electronic funds transfer to the extent the circumstances admit.
Explanation.—For the purposes of this section, “debt or other liability” means a legally enforceable
debt or other liability, as the case may be.