Sections 58D and 58E: Application of Section 58B Barred and Cognizance of Offences
Sections 58D and 58E of the Reserve Bank of India Act, 1934 establish an exclusion from the general penalty provision and prescribe who may institute criminal complaints, which courts may try offences and when the complainant's personal attendance may be dispensed with.
Section 58D: Section 58B does not apply to matters dealt with in Section 42. Section 58E: Prosecution ordinarily requires a written complaint by an RBI-authorised officer, subject to a specific State Government exception.
Section 58D - Application of Section 58B barred
Nothing contained in section 58B shall apply to, or in respect of, any matter dealt with in section 42.
Meaning and legal effect
Section 58B prescribes penalties for specified contraventions and defaults under the Act. Section 58D expressly excludes its application to matters dealt with by Section 42, which concerns cash reserves of scheduled banks to be kept with the Reserve Bank of India and associated obligations. Accordingly, a matter governed by Section 42 must be examined under its own applicable statutory framework rather than automatically invoking Section 58B.
The exclusion is confined to matters dealt with in Section 42; it is not a general exemption from other applicable legal obligations.
Section 58E - Cognizance of offences
Sub-section (1): Written complaint and competent court
No court shall take cognizance of any offence punishable under this Act except upon a complaint in writing made by an officer of the Bank, generally or specially authorised in writing in this behalf by the Bank, and no court other than that of a Metropolitan Magistrate or a Judicial Magistrate of the first class or a court superior thereto shall try any such offence:
Provided that in respect of any offence punishable under sub-section (5A) of section 58B, a complaint in writing may also be made by an officer of the State Government, generally or specially authorised in writing in this behalf by that Government.
Cognizance refers to a court taking judicial notice of an alleged offence for the purpose of proceeding under criminal law. The section imposes a statutory condition: the complaint must be in writing and ordinarily filed by an RBI officer holding general or special written authorisation. For offences under Section 58B(5A), a suitably authorised State Government officer may also file the complaint.
The provision additionally restricts trial jurisdiction to a Metropolitan Magistrate, Judicial Magistrate of the first class, or a superior court. A complaint by an unauthorised person does not satisfy the prescribed statutory route for cognizance.
Sub-section (2): Personal attendance of the complainant
Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), a Magistrate may, if he sees reason so to do, dispense with the personal attendance of the officer of the Bank filing the complaint, but the Magistrate may in his discretion, at any stage of the proceedings, direct the personal attendance of the complainant.
This provision allows the Magistrate to excuse the RBI complainant officer from attending personally where appropriate. The exemption is discretionary, not automatic. The Magistrate may require that officer to appear at any subsequent stage.
The statutory wording above retains its express reference to the Code of Criminal Procedure, 1973. For proceedings after the commencement of the Bharatiya Nagarik Suraksha Sanhita, 2023, the applicable procedural law and transitional provisions must also be considered.
Practical implications
Before initiating or examining prosecution under the RBI Act, the relevant authority and court should identify the alleged contravention, determine whether it concerns Section 42, verify the complainant's written authorisation, check whether the special State Government proviso applies, and confirm that the trial court meets the jurisdictional requirement. These are distinct questions from whether the alleged contravention can ultimately be proved.
Official statutory resources
For the text of the Act and subsequent legislative updates, refer to India Code - Reserve Bank of India Act, 1934 and the Department of Financial Services - RBI Act (PDF). The Reserve Bank of India publishes relevant regulatory directions and notifications.
Updated: 4 October 2026. This article explains the statutory framework and does not replace examination of the facts, amendments and applicable procedural provisions in a particular case.