Offences and Penalties: Jaiib/DBF Paper 3 (Module C) Unit-6

Offences and Penalties: Jaiib/DBF Paper 3 (Module C) Unit-6

Dear bankers,

As we all know that is Offences and Penalties for JAIIB Exam. JAIIB exam conducted twice in a year. So, here we are Offences and Penalties (Unit-6), Banking Related Laws (Module C), Legal & Regulatory Aspects of Banking -Paper 3.


  • Section 23 of the Act provides for filing of the particulars of charge created. Section 24 has provides for modification of the charge filed and the Section 25 has provides that the satisfaction of the charge has to be intimated to the central registrar.
  • If the securitisation or reconstruction company or the secured creditor fails to perform any of the duties as stated above, the company and the officers concerned for the default, as per provisions of this section, are punishable with a fine that may extend to five thousand rupees for each day during which the default continues.

♦Penalties For Non-Compliance Of Directions Of Reserve Bank Of India

  • Under the Section 12 or 12A of the SARFAESI Act, the Reserve Bank of India is statutorily empowered to issue directions to the securitisation or reconstruction company. If any such company fails to comply with any of the directions issued by the Reserve Bank of India, then such company is punishable with a fine not exceeding Rs. 5 lakh for the default. In case of further continuation of the offence, an additional fine up to Rs. 10,000 per day of the default can be imposed.


If any person:

  1. contravenes, or
  2. attempts to contravene, or
  3. abets the contravention of the provisions of the SARFAESI Act or rules made thereunder, he shall be punishable with imprisonment for a term, which may extend to one year or with a fine or both.

♦Cognisance Of Offences

  • Section 30 provides that no court shall take cognizance of any offence punishable under section 27 in relation to non-compliance with the provisions of section 23, section 24 or section 25 or under section 28 or section 29 or any other provisions of the SARFAESI Act, except upon a complaint in writing made by an officer of the Central Registry or an officer of the RBI, generally or specially authorized in writing in this behalf by the Central Register or, as the case may be, the Reserve Bank and congnisance of the offence under the SARFAESI Act shall be taken by the Metropolitan Magistrate or the Judicial Magistrate of First class only. No Court below the rank than this can take cognizance of such offences.

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