Section 28 of The Payment and Settlement Systems Act, 2007
- (1)No court shall take cognizance of an offence punishable under this Act except upon a complaint in writing made by an officer of the Reserve Bank generally or specially authorised by it in writing in this behalf, and no court, lower than that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any such offence: Provided that the Court may take cognizance of an offence punishable under section 25 upon a complaint in writing made by the person aggrieved by the dishonour of the electronic funds transfer.
- (2)Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), a Magistrate may dispense with the personal attendance of the officer of the Reserve Bank filing the complaint, but the Magistrate may, in his discretion, at any stage of the proceedings, direct the personal attendance of the complainant.
Summary
- Courts cannot take notice of a crime under this Act unless an authorized Reserve Bank officer files a written complaint.
- Only a Metropolitan Magistrate or a Judicial Magistrate of the first class (or higher) can try these cases.
- For crimes involving failed transfers (Section 25), the person who didn't get their money can file the complaint.
- The magistrate can let the Reserve Bank officer skip appearing in court personally.
- However, the magistrate can still order the officer to attend at any stage if they think it is necessary.
Practical examples
FAQ
1. Can I file a case if a payment company loses my private data?
No, for that offence, only an authorized officer of the Reserve Bank can file a written complaint.
2. Which court should I go to for a failed electronic payment?
You must go to a Metropolitan Magistrate or a Judicial Magistrate of the first class.
3. Can a local small-town court handle these cases?
No, the law says no court lower than a Judicial Magistrate of the first class can try these offences.
4. Does the RBI officer have to be in court for every hearing?
The magistrate has the power to dispense with their personal attendance, though they can be called if needed.
Test yourself
Q1.Under Section 28 of The Payment and Settlement Systems Act, 2007, what is the lowest rank of court allowed to try an offence under the Act?
Q2.Under Section 28 of The Payment and Settlement Systems Act, 2007, who can file a complaint for the dishonour of an electronic funds transfer under Section 25?
Q3.For general offences under The Payment and Settlement Systems Act, 2007, what is required before a court can take cognizance?
Q4.Under Section 28 of The Payment and Settlement Systems Act, 2007, what power does a Magistrate have regarding the RBI officer filing a complaint?