The Reserve Bank of India Act, 1934

Coming into Force06 March 1934
Date06 March 1934
Act Number02
Enactment Date06 March 1934
Record Number193402
CourtMinistry of Finance
1
THE RESERVE BANK OF INDIA ACT, 1934
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ARRANGEMENT OF SECTIONS
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CHAPTER I
PRELIMINARY
SECTIONS
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
INCORPORATION, CAPITAL, MANAGEMENT AND BUSINESS
3. Establishment and incorporation of Reserve Bank.
4. Capital of the Bank.
5. [Omitted.].
6. Offices, branches and agencies.
7. Management.
8. Composition of the Central Board, and term of office of Directors.
9. Local Boards, their constitution and functions.
10. Disqualifications of Directors and members of Local Boards.
11. Removal from and vacation of office.
12. Casual vacancies and absences.
13. Meetings of the Central Board.
14. [Omitted.].
15. [Omitted.].
16. [Omitted.].
17. Business which the Bank may transact.
18. Power of direct discount.
18A. Validity of loan or advance not to be questioned.
19. Business which the Bank may not transact.
CHAPTER III
CENTRAL BANKING FUNCTIONS
20. Obligation of the Bank to transact Government business.
20A. [Omitted.].
21. Bank to have the right to transact Government business in India.
21A. Bank to transact Government business of States on agreement.
21B. Effect of agreements made between the Bank and certain States before the 1st November, 1956.
22. Right to issue bank notes.
22A. Non-applicability of certain provisions to digital form of bank notes.
23. Issue Department.
Subject to verification and confirmation by the Department.
2
SECTIONS
24. Denominations of notes.
25. Form of bank notes.
26. Legal tender character of notes.
26A. Certain bank notes to cease to be legal tender.
27. Re-issue notes.
28. Recovery of notes lost, stolen, mutilated or imperfect.
28A. Issue of special bank notes and special one rupee notes in certain cases.
29. Bank exempt from stamp duty on bank notes.
30. Powers of Central Government to supersede Central Board.
31. Issue of demand bills and notes.
32. [Omitted.].
33. Assets of the Issue Department.
34. Liabilities of Issue Department.
35. [Omitted.].
36. [Omitted.].
37. Suspension of assets requirements as to foreign securities.
38. Obligations of Government and the Bank in respect of rupee coin.
39. Obligation to supply different forms of currency.
40. Transactions in foreign exchange.
41A. [Omitted.].
42. Cash reserves of scheduled banks to be kept with the Bank.
43. Publication of consolidated statement by the Bank.
43A. Protection of action taken in good faith.
44. [Omitted.].
45. Appointment of agents.
CHAPTER IIIA
COLLECTION AND FURNISHING OF CREDIT INFORMATION
45A. Definitions.
45B. Power of Bank to collect credit information.
45C. Power to call for returns containing credit information.
45D. Procedure for furnishing credit information to banking companies.
45E. Disclosure of information prohibited.
45F. Certain claims for compensation barred.
45G. [Omitted.].
CHAPTER III B
PROVISIONS RELATING TO NON-BANKING INSTITUTIONS RECEIVING DEPOSITS AND FINANCIAL
INSTITUTIONS
45H. Chapter IIIB not to apply in certain cases.
3
SECTIONS
45-I. Definitions.
45-IA. Requirement of registration and net owned fund.
45-IB. Maintenance of percentage of assets.
45-IC. Reserve fund.
45-ID. Power of Bank to remove directors from office.
45-IE. Supersession of Board of directors of non-banking financial company (Other than Government
Company).
45J. Bank to regulate or prohibit issue of prospectus or advertisement soliciting deposits of money.
45JA. Power of Bank to determine policy and issue directions.
45K. Power of Bank to collect information from non-banking institutions as to deposits and to give
directions.
45L. Power of Bank to call for information from financial institutions and to give directions.
45M.Duty of non-banking institutions to furnish statements, etc., required by Bank.
45MA. Powers and duties of auditors.
45MAA. Power to take action against auditors.
45MB. Power of Bank to prohibit acceptance of deposit and alienation of assets.
45MBA. Resolution of non-banking financial company.
45MC. Power of Bank to file winding up petition.
45N. Inspection.
45NA. Deposits not to be solicited by unauthorised person.
45NAA. Power in respect of group companies.
45NB. Disclosure of information.
45NC. Power of Bank to exempt.
45-O. [Omitted.].
45P. [Omitted.].
45Q. Chapter IIIB to override other laws.
45QA. Power of Company Law Board to offer repayment of deposit.
45QB. Nomination by depositors.
CHAPTER IIIC
PROHINITION OF ACCEPTANCE OF DEPOSITS BY UNINCORPORATED BODIES
45R. Interpretation.
45S. Deposits not to be accepted in certain cases.
45T. Power to issue search warrants.
CHAPTER IIID
REGULATION OF TRANSACTIONS IN DERIVATIVES, MONEY MARKET INSTRUMENTS,
SECURITIES, ETC.
45U. Definitions.

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