32. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding
anything inconsistent therewith contained in any other law for the time being in force.
33. Mode of recovery of penalty.—(1) The penalty imposed on the defaulter by the Reserve Bank
under section 30 may be recovered by issuing a notice to any person from whom any amount is due to the
defaulter, by requiring such person to deduct from the amount payable by him to the defaulter, the amount
payable to the Reserve Bank by way of penalty and pay to the Reserve Bank.
(2) Save as otherwise provided in this section, every person to whom a notice is issued under this subsection shall be bound to comply with such notice, and, in particular, where such notice is issued to a post
office, bank or an insurer, it shall not be necessary for any passbook, deposit receipt, policy or any other
document to be produced for the purpose of any entry, endorsement or the like being made before
payment is made notwithstanding that any rule, practice or requirement to the contrary.
(3) Any claim respecting any property in relation to which a notice under this sub-section has been
issued arising after the date of the notice shall be void as against any demand contained in the notice.
(4) Where a person to whom the notice under this sub-section is sent objects to it by a statement on
oath that the sum demanded or any part thereof is not due to the defaulter or that he does not hold any
money for or on account of the defaulter, then, nothing contained in this sub-section shall be deemed to
require such person to pay any such sum or part thereof, as the case may be, but if it is discovered that
such statement was false in any material particular, such person shall be personally liable to the Reserve
Bank to the extent of his own liability to the defaulter on the date of the notice, or to the extent of the
penalty imposed on the defaulter by the Reserve Bank, whichever is less.
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(5) The Reserve Bank may at any time or from time to time, amend or revoke any notice issued under
this section or extend the time for making the payment in pursuance of such notice.
(6) The Reserve Bank shall grant a receipt for any amount paid to it in compliance with a notice
issued under this section and the person so paying shall be fully discharged from his liability to the
defaulter to the extent of the amount so paid.
(7) Any person discharging any liability to the defaulter after the receipt of a notice under this section
shall be personally liable to the Reserve Bank to the extent of his own liability to the defaulter so
discharged or to the extent of the penalty imposed on the defaulter by the Reserve Bank, whichever is
less.
(8) If the person to whom the notice under this section is sent fails to make payment in pursuance
thereof to the Reserve Bank, he shall be deemed to be the defaulter in respect of the amount specified in
the notice and further proceedings may be taken against him for the realisation of the amount as if it were
an arrear due from him in the manner provided in this section.
Explanation.—For the purposes of this section, “defaulter” means any person or system provider or
system participant on whom the Reserve Bank has imposed a penalty under section 30.
34. Act not to apply to stock exchanges or clearing corporations of stock exchanges.—Nothing
contained in this Act shall apply to stock exchanges or the clearing corporations of the stock exchanges.
1
[34A. Act to apply to designated trade repository and issuer.—(1) The provisions of this Act
shall apply to, or in relation to, a designated trade repository or issuer, as they apply to, or in relation to,
payment systems to the extent applicable, subject to the modification that, throughout this Act, unless the
context otherwise requires,—
(a) references to a “payment system” or “system provider” shall be construed as references to a
“designated trade repository” or “issuer”, as the case may be;
(b) references to “commencement of this Act” shall be construed with reference to––
(i) a designated trade repository, as references to the date on which a trade repository is
specified by the Reserve Bank as a designated trade repository; and
(ii) an issuer, as references to commencement of the Payment and Settlement Systems
(Amendment) Act, 2015 (18 of 2015).
(2) The Reserve Bank may, on an application by a designated trade repository or otherwise, permit or
direct the designated trade repository to provide such other services as are deemed necessary from time to
time.
Explanation.—For the purposes of this section, the expression “designated trade repository” shall
mean a trade repository or a class of trade repositories, as maybe specified by the Reserve Bank from time
to time.]
2
[34B. Powers of Reserve Bank not to apply to International Financial Services Centre.—
Notwithstanding anything contained in any other law for the time being in force, the powers exercisable
by the Reserve Bank under this Act,—
(a) shall not extend to an International Financial Services Centre set up under sub-section (1) of
section 18 of the Special Economic Zones Act, 2005 (28 of 2005);
(b) shall be exercisable by the International Financial Services Centres Authority established
under sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019,
in so far as regulation of financial products, financial services and financial institutions that are permitted
in the International Financial Services Centres are concerned.]
1. Ins. by Act 18 of 2015, s. 5 (w.e.f. 1-6-2015).
2. Ins. by Act 50 of 2019, s. 33 and the second Schedule (w.e.f. 1-10-2020).
17
35. Certain persons deemed to be public servants.—Every officer of the Reserve Bank who has
been entrusted with any power under this Act, shall be deemed to be a public servant within the meaning
of section 21 of the Indian Penal Code (45 of 1860).
36. Protection of action taken in good faith.—No suit or other legal proceedings shall lie against
the Central Government, the Reserve Bank, or any officer thereof for any damage caused or likely to be
caused by anything which is in good faith done or intended to be done in pursuance of this Act, any
regulations, order or direction made or given thereunder.
37. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of
this Act, the Central Government may, by order published in the Official Gazette, make such provision is
not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing
the difficulty:
Provided that no order shall be made under this section after the expiry of a period of two years from
the commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each
House of Parliament.
38. Power of Reserve Bank to make regulations.—(1) The Reserve Bank may, by notification,
make regulations consistent with this Act to carry out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing provision, such regulations
may provide for all or any of the following matters, namely:—
(a) the powers and functions of the 1
[Board referred to in sub-section (2)], the time and venue of
its meetings and the procedure to be followed by it at its meetings (including the quorum at such
meetings) under sub-section (4) of section 3;
(b) the form and manner in which an application for authorisation for commencing or carrying on
a payment system shall be made and the fees which shall accompany such application under subsection (2) of section 5;
(c) the form in which an authorisation to operate a payment system under this Act shall be issued
under sub-section (2) of section 7;
(d) the format of payment instructions and other matters relating to determination of standards to
be complied with by the payment systems under sub-section (1) of section 10;
(e) the intervals, at which and the form and manner in which the information or returns required
by the Reserve Bank shall be furnished under section 12;
(f) such other matters as are required to be, or may be, prescribed.
(2) Any regulation made under this section shall have effect from such earlier or later date (nor earlier
than the date of commencement of this Act) as may be specified in the regulation.
(3) Every regulation shall, as soon as may be after it is made by the Reserve Bank, be forwarded to
the Central Government and that Central Government shall cause a copy of the same to be laid before
each House of Parliament, while it is in session, for a total period of thirty days which may be comprised
in one session or in two or more successive sessions, and if, before the expiry of the session immediately
following the session or the successive sessions aforesaid, both Houses agree in making any modification
in the regulation, or both Houses agree that the regulation should not be made, the regulation shall,
thereafter, have effect only in such modified form or be of no effect, as the case may be; so, however, that
any such modification or annulment shall be without prejudice to the validity of anything previously done
under that regulation.