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Legal Library
THE RESERVE BANK OF INDIA ACT, 1934
All Acts
THE RESERVE BANK OF INDIA ACT, 1934
ACT NO. 2 OF 1934 · Enacted [6th March, 1934.] · 138 sections
PRELIMINARY
Section 1.
Short title, extent and commencement.
Section 2.
Definitions.
INCORPORATION, CAPITAL, MANAGEMENT AND BUSINESS
Section 3.
Establishment and incorporation of Reserve Bank.
Section 4.
Capital of the Bank.
Section 5.
[Omitted.].
Section 6.
Offices, branches and agencies.
Section 7.
Management.
Section 8.
Composition of the Central Board, and term of office of Directors.
Section 9.
Local Boards, their constitution and functions.
Section 10.
Disqualifications of Directors and members of Local Boards.
Section 11.
Removal from and vacation of office.
Section 12.
Casual vacancies and absences.
Section 13.
Meetings of the Central Board.
Section 14.
[Omitted.].
Section 15.
[Omitted.].
Section 16.
[Omitted.].
Section 17.
Business which the Bank may transact.
Section 18.
Power of direct discount.
Section 18A.
Validity of loan or advance not to be questioned.
Section 19.
Business which the Bank may not transact.
CENTRAL BANKING FUNCTIONS
Section 20.
Obligation of the Bank to transact Government business.
Section 20A.
[Omitted.].
Section 21.
Bank to have the right to transact Government business in India.
Section 21A.
Bank to transact Government business of States on agreement.
Section 21B.
Effect of agreements made between the Bank and certain States before the 1st November, 1956.
Section 22.
Right to issue bank notes.
Section 23.
Issue Department.
Section 24.
Denominations of notes.
Section 25.
Form of bank notes.
Section 26.
Legal tender character of notes.
Section 26A.
Certain bank notes to cease to be legal tender.
Section 27.
Re-issue notes.
Section 28.
Recovery of notes lost, stolen, mutilated or imperfect.
Section 28A.
Issue of special bank notes and special one rupee notes in certain cases.
Section 29.
Bank exempt from stamp duty on bank notes.
Section 30.
Powers of Central Government to supersede Central Board.
Section 31.
Issue of demand bills and notes.
Section 32.
[Omitted.].
Section 33.
Assets of the Issue Department.
Section 34.
Liabilities of Issue Department.
Section 35.
[Omitted.].
Section 36.
[Omitted.].
Section 37.
Suspension of assets requirements as to foreign securities.
Section 38.
Obligations of Government and the Bank in respect of rupee coin.
Section 39.
Obligation to supply different forms of currency.
Section 40.
Transactions in foreign exchange.
Section 41A.
[Omitted.].
Section 42.
Cash reserves of scheduled banks to be kept with the Bank.
Section 43.
Publication of consolidated statement by the Bank.
Section 43A.
Protection of action taken in good faith.
Section 44.
[Omitted.].
Section 45.
Appointment of agents.
PROVISIONS RELATING TO NON-BANKING INSTITUTIONS RECEIVING DEPOSITS AND FINANCIAL INSTITUTIONS
Section 45-IA.
Requirement of registration and net owned fund.
Section 45-IC.
Reserve fund.
Section 45-IB.
Maintenance of percentage of assets.
Section 45-O.
[Omitted.].
Section 45-IE.
Supersession of Board of directors of non-banking financial company (Other than Government Company).
Section 45-ID.
Power of Bank to remove directors from office.
Section 45-I.
Definitions.
Section 45H.
Chapter IIIB not to apply in certain cases.
Section 45J.
Bank to regulate or prohibit issue of prospectus or advertisement soliciting deposits of money.
Section 45JA.
Power of Bank to determine policy and issue directions.
Section 45K.
Power of Bank to collect information from non-banking institutions as to deposits and to give directions.
Section 45L.
Power of Bank to call for information from financial institutions and to give directions.
Section 45M.
Duty of non-banking institutions to furnish statements, etc., required by Bank.
Section 45MA.
Powers and duties of auditors.
Section 45MAA.
Power to take action against auditors.
Section 45MB.
Power of Bank to prohibit acceptance of deposit and alienation of assets.
Section 45MBA.
Resolution of non-banking financial company.
Section 45MC.
Power of Bank to file winding up petition.
Section 45N.
Inspection.
Section 45NA.
Deposits not to be solicited by unauthorised person.
Section 45NAA.
Power in respect of group companies.
Section 45NB.
Disclosure of information.
Section 45NC.
Power of Bank to exempt.
Section 45P.
[Omitted.].
Section 45Q.
Chapter IIIB to override other laws.
Section 45QA.
Power of Company Law Board to offer repayment of deposit.
Section 45QB.
Nomination by depositors.
COLLECTION AND FURNISHING OF CREDIT INFORMATION
Section 45A.
Definitions.
Section 45B.
Power of Bank to collect credit information.
Section 45C.
Power to call for returns containing credit information.
Section 45D.
Procedure for furnishing credit information to banking companies.
Section 45E.
Disclosure of information prohibited.
Section 45F.
Certain claims for compensation barred.
Section 45G.
[Omitted.].
PROHINITION OF ACCEPTANCE OF DEPOSITS BY UNINCORPORATED BODIES
Section 45R.
Interpretation.
Section 45S.
Deposits not to be accepted in certain cases.
Section 45T.
Power to issue search warrants.
REGULATION OF TRANSACTIONS IN DERIVATIVES, MONEY MARKET INSTRUMENTS, SECURITIES, ETC.
Section 45U.
Definitions.
Section 45V.
Transactions in derivatives.
Section 45W.
Power to regulate transactions in derivatives, money market instruments, etc.
Section 45X.
Duty to comply with directions and furnish information.
JOINT MECHANISM
Section 45Y.
Joint Mechanism.
MONETARY POLICY
Section 45Z.
Provisions of this Chapter to override other provisions of Act.
Section 45ZA.
Inflation target.
Section 45ZB.
Constitution of Monetary Policy Committee.
Section 45ZC.
Eligibility and selection of Members appointed by Central Government.
Section 45ZD.
Terms and conditions of appointment of Members of Monetary Policy Committee.
Section 45ZE.
Removal of Members of Monetary Policy Committee.
Section 45ZF.
Vacancies, etc., not to invalidate proceedings of Monetary Policy Committee.
Section 45ZG.
Secretary to Monetary Policy Committee.
Section 45ZH.
Information for Monetary Policy Committee Members.
Section 45ZJ.
Steps to be taken to implement decision of Monetary Policy Committee.
Section 45ZK.
Publication of decisions.
Section 45ZL.
Publication of proceedings of meeting of Monetary Policy Committee.
Section 45ZM.
Monetary Policy Report.
Section 45ZN.
Failure to maintain inflation target.
Section 45ZO.
Power to make rules.
GENERAL PROVISIONS
Section 46.
Contribution by Central Government to the Reserve Fund.
Section 46A.
Contribution to National Rural Credit (Long Term Operations) Fund and National Rural Credit (Stabilisation) Fund.
Section 46C.
National Industrial Credit (Long Term Operations) Fund.
Section 46D.
National Housing Credit (Long Term Operations) Fund.
Section 47.
Allocation of surplus profits.
Section 48.
Exemption of Banks from income-tax and super-tax.
Section 49.
Publication of Bank rate.
Section 50.
Auditors.
Section 51.
Appointment of special auditors by Government.
Section 52.
Powers and duties of auditors.
Section 53.
Returns.
Section 54.
Rural Credit and Development.
Section 54A.
Delegation of powers.
Section 54AA.
Power of Bank to depute its employees to other institutions.
Section 55.
[Omitted.].
Section 56.
[Omitted.].
Section 57.
Liquidation of the Bank.
Section 57A.
Powers of Bank not to apply to International Financial Services Centre.
Section 58.
Power of the Central Board to make regulations.
Section 58A.
Protection of action taken in good faith.
PENALTIES
Section 58B.
Penalties.
Section 58C.
Offences by companies.
Section 58D.
Application of section 58B barred.
Section 58E.
Cognizance of offences.
Section 58F.
Application of fine.
Section 58G.
Power of Bank to impose fine.
Section 59.
[Repealed.].
Section 60.
[Repealed.].
Section 61.
[Repealed.].