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The Reserve Bank of India Act, 1934

Central

An Act to Constitute a Reserve Bank of India.

Act number
2 of 1934
Ministry
Ministry of Finance
Department
Department of Financial Services
Enacted
6 Mar 1934
In force from
6 Mar 1934

Source: IndiaCode Portal, Legislative Department, Ministry of Law and Justice, Government of India. Open on India Code Check against the official text before relying on it.

140 sections

  1. Section 1Short title, extent and commencement.
  2. Section 2Definitions.
  3. Section 3Establishment and incorporation of Reserve Bank.
  4. Section 4Capital of the Bank.
  5. Section 5[Omitted.].
  6. Section 6Offices, branches and agencies.
  7. Section 7Management.
  8. Section 8Composition of the Central Board, and term of office of Directors.
  9. Section 9Local Boards, their constitution and functions.
  10. Section 10Disqualifications of Directors and members of Local Boards.
  11. Section 11Removal from and vacation of office.
  12. Section 12Casual vacancies and absences.
  13. Section 13Meetings of the Central Board.
  14. Section 14[Omitted.].
  15. Section 15[Omitted.].
  16. Section 16[Omitted.].
  17. Section 17Business which the Bank may transact.
  18. Section 18Power of direct discount.
  19. Section 18AValidity of loan or advance not to be questioned.
  20. Section 19Business which the Bank may not transact.
  21. Section 20Obligation of the Bank to transact Government business.
  22. Section 20A[Omitted.].
  23. Section 21Bank to have the right to transact Government business in India.
  24. Section 21ABank to transact Government business of States on agreement.
  25. Section 21BEffect of agreements made between the Bank and certain States before the 1st November, 1956.
  26. Section 22Right to issue bank notes.
  27. Section 22ANon-applicability of certain provisions to digital form of bank notes
  28. Section 23Issue Department.
  29. Section 24Denominations of notes.
  30. Section 25Form of bank notes.
  31. Section 26Legal tender character of notes.
  32. Section 26ACertain bank notes to cease to be legal tender.
  33. Section 27Re-issue notes.
  34. Section 28Recovery of notes lost, stolen, mutilated or imperfect.
  35. Section 28AIssue of special bank notes and special one rupee notes in certain cases.
  36. Section 29Bank exempt from stamp duty on bank notes.
  37. Section 30Powers of Central Government to supersede Central Board.
  38. Section 31Issue of demand bills and notes.
  39. Section 32[Omitted.].
  40. Section 33Assets of the Issue Department.
  41. Section 34Liabilities of Issue Department.
  42. Section 35[Omitted.].
  43. Section 36[Omitted.].
  44. Section 37Suspension of assets requirements as to foreign securities.
  45. Section 38Obligations of Government and the Bank in respect of rupee coin.
  46. Section 39Obligation to supply different forms of currency.
  47. Section 40Transactions in foreign exchange.
  48. Section 41A[Omitted.].
  49. Section 42Cash reserves of scheduled banks to be kept with the Bank.
  50. Section 43Publication of consolidated statement by the Bank.
  51. Section 43AProtection of action taken in good faith.
  52. Section 44[Omitted.].
  53. Section 45Appointment of agents.
  54. Section 45ADefinitions.
  55. Section 45BPower of Bank to collect credit information.
  56. Section 45CPower to call for returns containing credit information.
  57. Section 45DProcedure for furnishing credit information to banking companies.
  58. Section 45EDisclosure of information prohibited.
  59. Section 45FCertain claims for compensation barred.
  60. Section 45G[Omitted.].
  61. Section 45HChapter IIIB not to apply in certain cases.
  62. Section 45-IDefinitions.
  63. Section 45-IARequirement of registration and net owned fund.
  64. Section 45-IBMaintenance of percentage of assets.
  65. Section 45-ICReserve fund.
  66. Section 45-IDPower of Bank to remove directors from office.
  67. Section 45-IESupersession of Board of directors of non-banking financial company (Other than Government Company).
  68. Section 45JBank to regulate or prohibit issue of prospectus or advertisement soliciting deposits of money.
  69. Section 45JAPower of Bank to determine policy and issue directions.
  70. Section 45KPower of Bank to collect information from non - banking institutions as to deposits and to give directions.
  71. Section 45LPower of Bank to call for information from financial institutions and to give directions.
  72. Section 45MDuty of non-banking institutions to furnish statements, etc., required by Bank.
  73. Section 45MAPowers and duties of auditors.
  74. Section 45MAAPower to take action against auditors.
  75. Section 45MBPower of Bank to prohibit acceptance of deposit and alienation of assets.
  76. Section 45MBAResolution of non-banking financial company.
  77. Section 45MCPower of Bank to file winding up petition.
  78. Section 45NInspection.
  79. Section 45NADeposits not to be solicited by unauthorised person.
  80. Section 45NAAPower in respect of group companies.
  81. Section 45NBDisclosure of information.
  82. Section 45NCPower of Bank to exempt.
  83. Section 45-OOmitted. .
  84. Section 45P[Omitted.].
  85. Section 45QChapter IIIB to override other laws.
  86. Section 45QAPower of Company Law Board to offer repayment of deposit.
  87. Section 45QBNomination by depositors.
  88. Section 45RInterpretation.
  89. Section 45SDeposits not to be accepted in certain cases.
  90. Section 45TPower to issue search warrants.
  91. Section 45UDefinitions.
  92. Section 45VTransactions in derivatives.
  93. Section 45WPower to regulate transactions in derivatives, money market instruments, etc.
  94. Section 45XDuty to comply with directions and furnish information.
  95. Section 45YJoint Mechanism.
  96. Section 45ZProvisions of this Chapter to override other provisions of Act.
  97. Section 45ZAInflation target.
  98. Section 45ZBConstitution of Monetary Policy Committee.
  99. Section 45ZCEligibility and selection of Members appointed by Central Government.
  100. Section 45ZDTerms and conditions of appointment of Members of Monetary Policy Committee.
  101. Section 45ZERemoval of Members of Monetary Policy Committee.
  102. Section 45ZFVacancies, etc., not to invalidate proceedings of Monetary Policy Committee.
  103. Section 45ZGSecretary to Monetary Policy Committee.
  104. Section 45ZHInformation for Monetary Policy Committee Members.
  105. Section 45Z-IMeetings of Monetary Policy Committee.
  106. Section 45ZJSteps to be taken to implement decision of Monetary Policy Committee.
  107. Section 45ZKPublication of decisions.
  108. Section 45ZLPublication of proceedings of meeting of Monetary Policy Committee.
  109. Section 45ZMMonetary Policy Report.
  110. Section 45ZNFailure to maintain inflation target.
  111. Section 45ZOPower to make rules.
  112. Section 46Contribution by Central Government to the Reserve Fund.
  113. Section 46AContribution to National Rural Credit (Long Term Operations) Fund and Nation al Rural Credit (Stabilisation) Fund.
  114. Section 46CNational Industrial Credit (Long Term Operations) Fund.
  115. Section 46DNational Housing Credit (Long Term Operations) Fund.
  116. Section 47Allocation of surplus profits.
  117. Section 48Exemption of Banks from income-tax and super-tax.
  118. Section 49Publication of Bank rate.
  119. Section 50Auditors.
  120. Section 51Appointment of special auditors by Government.
  121. Section 52Powers and duties of auditors.
  122. Section 53Returns.
  123. Section 54Rural Credit and Development.
  124. Section 54ADelegation of powers.
  125. Section 54AAPower of Bank to depute its employees to other institutions.
  126. Section 55[Omitted.].
  127. Section 56[Omitted.].
  128. Section 57Liquidation of the Bank.
  129. Section 57APowers of Bank not to apply to International Financial Services Centre.
  130. Section 58Power of the Central Board to make regulations.
  131. Section 58AProtection of action taken in good faith.
  132. Section 58BPenalties.
  133. Section 58COffences by companies.
  134. Section 58DApplication of section 58B barred.
  135. Section 58ECognizance of offences.
  136. Section 58FApplication of fine.
  137. Section 58GPower of Bank to impose fine.
  138. Section 59[Repealed.].
  139. Section 60[Repealed.].
  140. Section 61[Repealed.].