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Reserve Bank of India Act 1934

 

 

CHAPTER I
PRELIMINARY

Section 1 of RBI Act 1934 : "Short title, extent and commencement"

(1) This Act may be called the Reserve Bank of India Act, 1934.

(2) It extends to the whole of India.

(3) This section shall come into force at once, and the remaining provisions of this Act shall come into force on such date or dates3 as the Central Government may, by notification4 in the Gazette of India, appoint.

Section 2 - Definitions

CHAPTER II
INCORPORATION, CAPITAL, MANAGEMENT AND BUSINESS

Section 3 - Establishment and incorporation of Reserve Bank

Section 4 - Capital of the Bank

Section 5 - Increase and reduction of Share Capital

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 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

CHAPTER III
CENTRAL BANKING FUNCTION

Section 20 - Obligation of the Bank to transact Government business

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 of 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 - Penalty

Section 33 - Assets of the Issue Department

Section 34 - Liabilities of the issue department

Section 35 - Initial assets and liabilities

Section 36 - Method of dealing with fluctuations in rupee coin assets

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 41 - Obligation to provide remittance between India and Burma Repealed by Act No. 11 of 1947, w.e.f. 1-4-1947

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 - Power to require returns from co-operative banks. Omitted by the Banking Laws (Application to Co-operative Societies) Act, 1965, w.e.f. 1-3-1966. Earlier, it was amended by the Reserve Bank of India (Amendment) Act, 1951, w.e.f. 1-11-1951.

Section 45 - Appointment of agents

CHAPTER IIIA
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 45H Chapter IIIB not to apply in certain cases

Section 45I - Definitions

Section 45IA - Requirement of registration and net owned fund

Section 45 IB - Maintenance of percentage of assets

Section 45 IC - Reserve fund

Section 45 J - Bank to regulate or prohibit issue of prospectus or advertisement soliciting deposits of money

Section 45 JA - Power of Bank to determine policy and issue directions

Section 45 K - Power of Bank to collect information from non-banking institutions as to deposits and to give directions

Section 45 L - Power of Bank to call for information from financial institutions and to give directions

Section 45 M - Duty of non-banking institutions to furnish statements, etc., required by Bank

Section 45 MA - Powers and duties of auditors

Section 45 MB - Power of bank to prohibit acceptance of deposit and alienation of assets

Section 45 MC - Power of Bank to file winding up petition

Section 45 N - Inspection

Section 45NA - Deposits not to be solicited by unauthorised persons

Section 45 NB - Disclosure of information

Section 45 NC - Power of Bank to exempt

Section 45Q - Chapter IIIB to override other laws

Section 45QA - Power of Company Law Board to order repayment of deposit

Section 45QB - Nomination by depositors

CHAPTER IIIC
PROHIBITION OF ACCEPTANCE OF DEPOSITS BY UNINCORPORATED BODIES

Section 45R - Interpretation

45S - Deposits not to be accepted in certain cases

Section 45T - Power to issue search warrants

Section 45U - Definitions

CHAPTER IIID
REGULATION OF TRANSACTIONS IN DERIVATIVES, MONEY MARKET INSTRUMENTS, SECURITIES, ETC.

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

CHAPTER IIIE
JOINT MECHANISM

Section 45Y - Joint Mechanism

CHAPTER IV
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 (Stabilization) 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 Bank 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 - Reports by the Bank, Power to require declaration as to ownership of registered share. Repealed by Act 62 of 1948, w.e.f. 1-1-1949

Section 56 - Power to require declaration as to ownership of registered shares. Omitted by the Reserve Bank (Transfer to Public Ownership) Act, 1948, w.e.f. 1-1-1949

Section 57 - Liquidation of the Bank

Section 58 - Power of the Central Board to make regulations

Section 58A - Protection of action taken in good faith

Section 58B - Penalties

Section 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 - Amendment of Act 3 of 1906 Repealed by the Repealing and Amending Act, 1937 (20 of 1937)

Section 60 - Repeals Repealed by the Repealing and Amending Act, 1937 (20 of 1937)

First Schedule

 
 

 

 

 

 

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