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Reserve Bank of India Act, 1934 | Chapter IV

Section 54-A: Delegation of Powers and Section 54-AA: Deputation of RBI Employees

Sections 54-A and 54-AA of the Reserve Bank of India Act, 1934 address two distinct administrative matters: delegation of statutory functions by the RBI Governor to a Deputy Governor, and deputation of RBI staff to certain other institutions. Both provisions contain express limits and safeguards.

On this pageSection 54-A: Delegation of powersSection 54-AA: Staff deputationStatutory provisionsPractical interpretationOfficial sources

Section 54-A: Delegation of powers

Under Section 54-A(1), the Governor may delegate specified powers and functions exercisable under the RBI Act or another law to a Deputy Governor through a general or special order. The Governor may impose conditions or limitations. The stated purpose is the efficient administration of the Bank's functions.

Section 54-A(2) provides that a Deputy Governor's exercise of a power or performance of an act in pursuance of the Act is conclusive proof of the Deputy Governor's authority. This statutory evidentiary rule is important when evaluating actions taken through delegated authority.

Section 54-AA: Power to depute employees to other institutions

Section 54-AA(1) authorises RBI to depute staff members for periods it considers appropriate, notwithstanding contrary laws or agreements, to institutions wholly or substantially owned by RBI and to the specified institutions subject to the historical time limits appearing in clauses (b) and (c). Deputed staff render services to the receiving institution during deputation.

Eligible institutions and historical clauses

Clause (a) covers institutions wholly or substantially owned by RBI. Subsection (4) explains that not less than 40% of an institution's capital held by RBI meets the substantial ownership threshold. Clauses (b) and (c) refer respectively to the Development Bank and Unit Trust, with specified 30-month cut-off periods linked to legislation and government notification. Those time-bound references must not be interpreted as fresh or perpetual deputation authorisations.

Protection of staff service conditions

Under subsection (2), deputation does not create an entitlement to enhanced salary, emoluments or other terms that would not otherwise have been available. Under subsection (3), RBI cannot use this section to depute an employee on less favourable salary, emoluments or other service conditions than those applicable immediately before deputation.

The Explanation defines capital, in relation to the Unit Trust, as that Trust's initial capital. Legacy institutional references should be read in light of subsequent statutory restructuring and current law.

Text of Sections 54-A and 54-AA

The following legislative wording is retained from the supplied webpage. For formal legal use, check the authoritative current version of the Act, including amendments and institutional changes.

Section 54-A - Delegation of powers

(1) The Governor may, by general or special order, delegate to a Deputy Governor, subject to such conditions and limitations, if any, as may be specified in the order, such of the powers and functions exercisable by him under this Act or under any other law for the time being in force as he may deem necessary for the efficient administration of the functions of the Bank.

(2) The fact that a Deputy Governor exercises any power or does any act or thing in pursuance of this Act shall be conclusive proof of his authority to do so.

Section 54-AA - Power of Bank to depute its employees to other institutions

(1) The bank may, notwithstanding anything contained in any law, or in any agreement, for the time being in force, depute any member of its staff for such period as it may thinks fit,-

(a) to any institution which is wholly or substantially owned by the bank;

(b) to the Development Bank, so, however, that no such deputation shall continue after the expiration of thirty months from the commencement of section 5 of the Public Financial Institutions Laws (Amendment) Act, 1975;

(c) to the Unit Trust, so, however, that no such deputation shall continue after the expiration of thirty months from the date notified by the Central Government under sub-section (1) of section 4A of the Unit Trust of India Act, 1963 (52 of 1963);

and thereupon the person so deputed shall, during the period of his deputation, render such service to the institution to which he is so deputed as that institution may require.

(2) Where a person has been deputed to an institution under sub-section (1), he shall not be entitled to claim any salary, emoluments and other terms and conditions of service which he would not have been entitled to claim if he had not been so deputed.

(3) Nothing contained in this section shall empower the bank to depute any member of its staff to any institution on any salary, emoluments or other terms and conditions which is or are less favourable to him than that or those to which he is entitled immediately before such deputation.

(4) For the purposes of this section, an institution shall be deemed to substantially owned by the bank if in the capital of the institution the bank has not less than forty per cent share.

Explanation - The word "capital" means, in relation to the Unit Trust, the initial capital of that Trust.

Key differences and interpretation

Related provisions

For nearby general provisions, see Sections 53 and 54 (returns and rural credit) and Sections 57 and 58 (liquidation and regulations).

Official legal resources

Verify historical statutory references and any subsequent amendments using official sources before relying on these provisions in legal proceedings or personnel decisions.