law: Payment and Settlement Systems Act, 2007
  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 sub-section 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.
  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.