Section 45 N - Inspection, Section 45NA - Deposits not to be
solicited by unauthorised persons : RBI Act 1934
Who will do Inspection? What is the meaning of Deposits not to be
solicited by unauthorised persons?
Section 45N and 45NA of
Reserve Bank of India Act 1934
Section 45-N of RBI Act 1934 : "Inspection"
(1) The Bank may, at any time, cause an inspection to be made
by one or more of its officers or employees or other persons
(hereafter in this section referred to as the inspecting
(i) of any non-banking institution, including a financial
institution, for the purposes of verifying the correctness or
completeness of any statement, information or particulars
furnished to the Bank or for the purpose of obtaining any
information or particulars which the non-banking institution has
failed to furnish on being called upon to do so ; or
(ii) of any non-banking institution being a financial
institution, if the Bank considers it necessary or expedient to
inspect that institution.
(2) It shall be the duty of every director or member of any
Committee or other body for the time being vested with the
management of the affairs of the non-banking institution or
other officer or employee thereof to produce to the inspecting
authority all such books, accounts and other documents in his
custody or power and to furnish that authority with any
statements and information relating to the business of the
institution as that authority may require of him, within such
time as may be specified by that authority.
(3) The inspecting authority may examine on oath any director
or member of any Committee or body for the time being vested
with the management of the affairs of the non-banking
institution or other officer or employee thereof, in relation to
its business and may administer an oath accordingly.
Section 45-NA of RBI Act 1934 : "Deposits not
to be solicited by unauthorised persons"
No person shall solicit on behalf of any non-banking
institution either by publishing or causing to be published any
prospectus or advertisement or in any other manner deposits of
money from the public unless-
(a) he has been authorised in writing by the said non-banking
institution to do so and specifies the name of the institution
which has so authorised him, and
(b) the prospectus or advertisement complies with any order
made by the Bank under section 45J and with any other provision
of law for the time being in force, applicable to the
publication of such prospectus or advertisement.