Section 2 of the Reserve Bank of India Act, 1934 - Definitions
Section 2 contains general definitions used throughout the Reserve Bank of India Act, 1934. The opening rule applies these meanings unless the subject or context requires otherwise. Several clauses have been inserted, amended or omitted over time, so the current consolidated text should be read rather than an older reproduction of the section.
Definitions under Section 2
(aii) The Bank
"The Bank" means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934.
(aiii) Bank for International Settlements
This expression refers to the body corporate established under Swiss law with that name pursuant to the agreement dated 20 January 1930 signed at The Hague.
(aiv) Bank note
A "bank note" means a bank note issued by the Reserve Bank of India, whether in physical or digital form, under Section 22 of the Act.
(b) Central Board
"The Central Board" means the Central Board of Directors of the Reserve Bank of India.
(bva) Consumer Price Index
"Consumer Price Index" means the Consumer Price Index Combined published by the Government of India from time to time.
(bvi) Deposit Insurance Corporation
This means the Deposit Insurance Corporation established under Section 3 of the Deposit Insurance Corporation Act, 1961.
(bviiia) Exim Bank
"Exim Bank" means the Export-Import Bank of India established under the Export-Import Bank of India Act, 1981.
(bix) Foreign currency and foreign exchange
The statutory clause assigns these expressions the meanings given to them in the Foreign Exchange Regulation Act, 1973. The official consolidated RBI Act should be consulted for the exact current statutory wording and amendment history.
(c) Industrial Finance Corporation
This means the Industrial Finance Corporation of India established under the Industrial Finance Corporation Act, 1948.
(ci) Inflation
"Inflation" means the year-wise change in monthly Consumer Price Index expressed as a percentage.
(cii) Inflation target
"Inflation target" means the inflation target determined in accordance with Section 45ZA(1) of the Act.
(ca) International Development Association
This refers to the Association mentioned in the International Development Association (Status, Immunities and Privileges) Act, 1960.
(cb) International Finance Corporation
This refers to the Corporation mentioned in the International Finance Corporation (Status, Immunities and Privileges) Act, 1958.
(cc) International Monetary Fund and International Bank for Reconstruction and Development
These expressions refer respectively to the International Fund and the International Bank referred to in the International Monetary Fund and Bank Act, 1945.
(cci) Monetary Policy Committee
"Monetary Policy Committee" means the committee constituted under Section 45ZB(1) of the Reserve Bank of India Act, 1934.
(ccc) National Bank
"National Bank" means the National Bank for Agriculture and Rural Development established under Section 3 of the National Bank for Agriculture and Rural Development Act, 1981.
(ccci) National Bank for Financing Infrastructure and Development
This means the institution established under Section 3 of the National Bank for Financing Infrastructure and Development Act, 2021.
(cccii) Other development financial institution
This means a development financial institution licensed under Section 29 of the National Bank for Financing Infrastructure and Development Act, 2021.
(cccc) National Housing Bank
"National Housing Bank" means the National Housing Bank established under Section 3 of the National Housing Bank Act, 1987.
(cccci) Policy Rate
"Policy Rate" means the rate for repo transactions under Section 17(12AB) of the Reserve Bank of India Act, 1934.
(cv) Reconstruction Bank
This means the Industrial Reconstruction Bank of India established under Section 3 of the Industrial Reconstruction Bank of India Act, 1984, as the clause appears in the consolidated statutory text.
(d) Rupee coin
The clause defines "rupee coin" by reference to rupees that are legal tender in India under the coinage legislation referred to in the consolidated Act.
(e) Scheduled bank
A "scheduled bank" means a bank included in the Second Schedule to the Reserve Bank of India Act, 1934.
(el) Small Industries Bank
This means the Small Industries Development Bank of India established under Section 3 of the Small Industries Development Bank of India Act, 1989.
(ea) Sponsor Bank
"Sponsor Bank" has the meaning assigned to that expression in the Regional Rural Banks Act, 1976.
(eb) State Bank
"State Bank" means the State Bank of India constituted under the State Bank of India Act, 1955.
(fi) State Financial Corporation
This means a State Financial Corporation established under the State Financial Corporations Act, 1951.
(g) Unit Trust
"Unit Trust" means the Unit Trust of India established under Section 3 of the Unit Trust of India Act, 1963, as retained in the consolidated text of Section 2.
Definitions adopted from other banking laws
(h) NABARD Act expressions
The expressions "agricultural operations", "central co-operative bank", "co-operative society", "crops", "marketing of crops", "pisciculture", "regional rural bank" and "State co-operative bank" take their respective meanings from the National Bank for Agriculture and Rural Development Act, 1981.
(i) Banking Regulation Act expressions
The expressions "co-operative bank", "co-operative credit society", "director", "primary agricultural credit society", "primary co-operative bank" and "primary credit society" take their respective meanings from Part V of the Banking Regulation Act, 1949.
Omitted clauses and amendment history
Section 2 contains a number of omitted clause markers because Parliament has deleted or replaced definitions over the history of the Act. Those markers are legally relevant to the legislative history but do not create operative definitions. For current application, the provision should be read with its amendment footnotes and the related enactments referred to by each definition.