RESERVE BANK OF INDIA ACT, 1934
15. [Omitted by the Reserve Bank (Transfer to Public Ownership) Act, 1948, w.e.f. 1-1-1949]
16. [Omitted by the Reserve Bank (Transfer to Public Ownership) Act, 1948, w.e.f. 1-1-1949] 11
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 by the Reserve Bank of India (Amendment) Act, 1947, w.e.f. 1-4-1947]
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.
28A. Issue of special bank notes and special one rupee notes in certain
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 by the Reserve Bank of India (Amendment) Act, 1974, w.e.f. 13-12-1974]
33. Assets of the Issue Department
34. Liabilities of the issue department
CONTENTS
35. [Omitted by the Reserve Bank (Transfer to Public Ownership) Act, 1948, w.e.f. 1-1-1949]
36. [Omitted by the Banking Laws (Miscellaneous Provisions) Act, 1963, w.e.f. 1-2-1964]
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 by the Reserve Bank of India (Amendment) Act, 1947, w.e.f. 1-4-1947]
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 by the Banking Laws (Application to Co-operative Societies) Act, 1965, w.e.f. 1-3-1966]
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 by the Reserve Bank of India (Amendment) Act, 1974, w.e.f. 13-12-1974]
CHAPTER IIIB
PROVISIONS RELATING TO NON-BANKING INSTITUTIONS RECEIVING DEPOSITS AND FINANCIAL INSTITUTIONS
45H. Chapter IIIB not to apply in certain cases
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
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 persons
45NAA. Power in respect of group companies
45NB. Disclosure of information
45NC. Power of Bank to exempt
45-O. [Omitted by the Reserve Bank of India (Amendment) Act, 1974, w.e.f. 13-12-1974]
45P. [Omitted by the Reserve Bank of India (Amendment) Act, 1974, w.e.f. 13-12-1974]
45Q. Chapter IIIB to override other laws
45QA. Power of Company Law Board to order repayment of deposit
45QB. Nomination by depositors
CHAPTER IIIC
PROHIBITION 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 72
45V. Transactions in derivatives 72
45W. Power to regulate transactions in derivatives, money market instruments, etc. 72
45X. Duty to comply with directions and furnish information 73
CHAPTER IIIE
JOINT MECHANISM
45Y. Joint Mechanism 73
CHAPTER IIIF
MONETARY POLICY
45Z. Provisions of this Chapter to override other provisions of Act 74
45ZA. Inflation target 75
45ZB. Constitution of Monetary Policy Committee 75
45ZC. Eligibility and selection of Members appointed by Central Government 75
45ZD. Terms and conditions of appointment of Members of Monetary Policy Committee 76
45ZE. Removal of Members of Monetary Policy Committee 76
45ZF. Vacancies, etc., not to invalidate proceedings of Monetary Policy Committee 77
45ZG. Secretary to Monetary Policy Committee 77
45ZH. Information for Monetary Policy Committee Members 77
45ZI. Meetings of Monetary Policy Committee 77
45ZJ. Steps to be taken to implement decision of Monetary Policy Committee 78
45ZK. Publication of decisions 78
45ZL. Publication of proceedings of meeting of Monetary Policy Committee 78
45ZM. Monetary Policy Report 79
45ZN. Failure to maintain inflation target 79
45ZO. Power to make rules 79
CHAPTER IV GENERAL PROVISIONS
46. Contribution by Central Government to the Reserve Fund 80
46A. Contribution to National Rural Credit (Long-Term Operations) Fund and National Rural Credit (Stabilization) Fund 80
46B. [ Omitted by the National Bank for Agricultural and Rural Development Act, 1981, w.e.f 12-7-1982] 80
46C. National Industrial Credit (Long-Term Operations) Fund 80
46D. National Housing Credit (Long-Term Operations) Fund 81
47. Allocation of surplus profits 81
48. Exemption of Bank from income-tax and super-tax 81
49. Publication of Bank rate 82
50. Auditors 82
51. Appointment of special auditors by Government 82
52. Powers and duties of auditors 82
53. Returns 82
54. Rural Credit and Development 83
54A. Delegation of powers 83
54AA. Power of Bank to depute its employees to other institutions 83
55. [Omitted by the Reserve Bank (Transfer to Public Ownership) Act, 1948, w.e.f. 1-1-1949] 84
56. [Omitted by the Reserve Bank (Transfer to Public Ownership) Act, 1948, w.e.f. 1-1-1949] 84
57. Liquidation of the Bank 84
57A. Powers of Bank not to apply to International Financial Services Centre 84
58. Power of the Central Board to make regulations 85
58A. Protection of action taken in good faith 88
CHAPTER V PENALTIES
58B. Penalties 88
58C. Offences by companies 93
58D. Application of section 58B barred 95
58E. Cognizance of offences 95
58F. Application of fine
58G. Power of Bank to impose fine 95
59. [Omitted by the Repealing and Amending Act, 1937, w.e.f. 14-4-1937 ] 98
60. [Omitted by the Repealing and Amending Act, 1937, w.e.f. 14-4-1937 ] 98
61. [Omitted by the Repealing and Amending Act, 1937, w.e.f. 14-4-1937 ] 98
FIRST SCHEDULE
SPECIFIED BANK NOTES (CESSATION OF LIABILITIES) ACT, 2017
1. Short title and commencement
2. Definitions
3. Specified bank notes to cease to be liability of Reserve Bank or Central Government
4. Exchange of specified bank notes
5. Prohibition on holding transferring or receiving specified bank notes
6. Penalty for contravention of section 4
7. Penalty for contravention of section 5
8. Offences by companies
9. Special provisions relating to offences
10. Protection of action taken in good faith
11. Power to make rules
12. Power to remove difficulties
13. Repeal and savings
INDEX
BILATERAL NETTING OF QUALIFIED FINANCIAL CONTRACTS ACT, 2020
CHAPTER I PRELIMINARY
1. Short title and commencement
2. Definitions
3. Applicability of Act
4. Powers of authority
5. Enforceability of netting
CHAPTER II
OF ACT
CHAPTER III
INVOCATION OF CLOSE-OUT NETTING
6. Invocation of close-out netting
7. Net amount
CHAPTER IV
LIMITATIONS ON POWERS OF ADMINISTRATION PRACTITIONER
8. Limitations on powers of administration practitioner
CHAPTER V
9. Power to amend Schedules
10. Provisions of this Act to override other laws
11. Power to remove difficulties
NATIONAL BANK FOR FINANCING INFRASTRUCTURE AND DEVELOPMENT ACT, 2021
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement
2. Definitions
CHAPTER II
ESTABLISHMENT AND INCORPORATION OF INSTITUTION
3. Establishment and incorporation of Institution
4. Purposes and objectives of Institution
5. Authorised share capital
CHAPTER III
BOARD OF DIRECTORS AND MANAGEMENT
6. Board of Directors
7. Management
8. Delegation of powers
9. Term of office and other terms and conditions of service of Chairperson and other directors of Board
10. Disqualification and removal of directors from office
11. Removal of Chairperson and other directors in certain cases
12. Vacation and resignation of office by directors
13. Meetings of Board
14. Defects in appointment not to invalidate acts, etc.
15. Committees of Board
16. Disclosure of interest by members of Board or of committees
CHAPTER IV
ACTIVITIES OF INSTITUTION
17. Functions and powers of Institution
18. Prohibited business
19. Related party transactions
20. Performance review of Institution
CHAPTER V
GOVERNMENT GRANTS, GUARANTEES AND OTHER CONCESSIONS
21. Grants and contribution
22. Concessional rate of Government guarantee
23. Hedging costs
CHAPTER VI
ACCOUNTS, AUDIT AND REPORT
24. Disposal of profits accruing to Institution, to reserve fund
25. Preparation of balance-sheet and accounts
26. Audit
27. Returns and report
CHAPTER VII
MISCELLANEOUS
28. Receivables to be held in trust
29. Setting up of other development financial institution
30. Officers and employees
31. Power of Central Government to make rules
32. Power of Board to make regulations
33. Rules and regulations to be laid before Parliament
34. Protection of action taken in good faith
35. Sanction for enquiry, inquiry, investigation and prosecution
36. Appointment of directors by Institution to prevail
37. Validity of loan or advance not to be questioned
38. Obligations as to fidelity and secrecy
39. Adjudication
40. Indemnity of directors 157
41. Bankers’ Books of Evidence Act, 1891 to apply in relation to the Institution 157
42. Sections 34A and 36AD of the Banking Regulation Act, 1949 to apply to Institution 157
43. Liquidation of Institution 157
44. Power of Central Government to issue directions
45. Overriding effect of this Act
46. Power to remove difficulties
47. Amendment of Act 2 of 1934
48. Amendment of Act 10 of 1949
FIRST SCHEDULE : Declaration of Fidelity and Secrecy
SECOND SCHEDULE : Amendments to the Reserve Bank of India Act, 1934
THIRD SCHEDULE : Amendments to the Banking Regulation Act, 1949
SUBJECT
SPECIFIED BANK NOTES (DEPOSIT OF CONFISCATED NOTES) RULES, 2017
1. Short title and commencement
2. Deposit of confiscated specified bank notes
3. These rules not to apply in certain cases
SPECIFIED BANK NOTES (DEPOSIT BY BANKS, POST OFFICES AND DISTRICT CENTRAL COOPERATIVE BANKS) RULES, 2017
1. Short title and commencement
2. Deposit of specified bank notes with Reserve Bank
NATIONAL BANK FOR FINANCING INFRASTRUCTURE AND DEVELOPMENT GENERAL RULES, 2022
3. Term of office of Chairperson and other directors
4. Other terms and conditions of service of directors other than whole-time directors
4A. Other terms and conditions of service of the whole-time directors
5. Induction of independent directors
6. Disclosure of interest
7. Contract or arrangement with related party
8. Use of electronic records and electronic signature
9. Form and manner of balance sheet and accounts 173 SCHEDULE
RESERVE BANK OF INDIA (BOARD FOR FINANCIAL SUPERVISION) REGULATIONS, 1994
CHAPTER I
INTRODUCTORY
1. Short title and commencement
2. Regulations not in derogation of General Regulations, 1949
3. Definitions
4. Composition of the Board
5. Functions and powers of the Board
6. Assistance to the Board
7. Nominations
8. Vacation of offices
9. Powers on behalf of the Board by whom to be exercised
10. Applicability of the General Regulations
11. Meetings of the Board and Quorum
12. Constitution of Sub-Committees
13. Functions and meetings of Executive Committee
14. Functions and meetings of Advisory Council
15. Report to the Central Board
NATIONAL BANK FOR FINANCING INFRASTRUCTURE AND DEVELOPMENT GENERAL REGULATIONS, 2022
1. Short title and commencement
2. Definitions
3. Manner of holding meetings of Board and committees
4. Audit Committee
5. Nomination and Remuneration Committee
6. Risk Management Committee
7. Executive Committee and other committees 228
8. Amount for transactions with related party 228
9. Salary and allowances 229
10. Deputation 229
11. Mechanism for determining penalties 230
RESERVE BANK - INTEGRATED OMBUDSMAN SCHEME, 2021
CHAPTER I PRELIMINARY
1. Short Title, Commencement, Extent and Application 232
2. Suspension of the Scheme 232
3. Definitions 232
CHAPTER II
OFFICES UNDER THE RESERVE BANK - INTEGRATED OMBUDSMAN SCHEME, 2021
4. Appointment and Tenure of Ombudsman and Deputy Ombudsman 234
5. Location of the Office of the Ombudsman 234
6. Establishment of a Centralised Receipt and Processing Centre 235
7. Staffing of the Offices of Ombudsman and Centralised Receipt and Processing Centre 235
CHAPTER III
POWERS AND FUNCTIONS OF THE OMBUDSMAN
8. Powers and Functions 235
CHAPTER IV
PROCEDURE FOR REDRESSAL OF GRIEVANCE UNDER THE SCHEME
9. Grounds of Complaint 236
10. Grounds for non-maintainability of a Complaint 236
11. Procedure for Filing a Complaint 237
12. Initial Scrutiny of Complaints 237
13. Power to Call for Information 238
14. Resolution of Complaints 238
15. Award by the Ombudsman
16. Rejection of a Complaint
17. Appeal before the Appellate Authority
18. Regulated Entity to Display Salient Features of the Scheme for Knowledge of the Public
CHAPTER V MISCELLANEOUS
19. Removal of Difficulties
20. Repeal of the Existing Schemes and Application to Pending Proceedings
Reserve Bank of India Act, 1934
[2 OF 1934]1
An Act to constitute a Reserve Bank of India.
WHEREAS it is expedient to constitute a Reserve Bank for India to regulate the issue of Bank notes and the keeping of reserves with a view to securing monetary stability in 1a[India] and generally to operate the currency and credit system of the country to its advantage;
2[AND WHEREAS it is essential to have a modern monetary policy framework to meet the challenge of an increasingly complex economy; AND WHEREAS the primary objective of the monetary policy is to maintain price stability while keeping in mind the objective of growth;
AND WHEREAS the monetary policy framework in India shall be operated by the Reserve Bank of India;]
It is hereby enacted as follows :—
CHAPTER I PRELIMINARY
Short title, extent and commencement.
1. (1) This Act may be called the Reserve Bank of India Act, 1934.
2a[(2) It extends to the whole of India 3[***].]
1.Dated 6-3-1934.
1a. Substituted for “British India” by the Indian Independence (Adaptation of Central Acts and Ordinances) Order, 1948, w.e.f. 23-3-1948.
2.Substituted by the Finance Act, 2016, w.e.f. 27-6-2016†. Prior to its substitution, paragraphs 2 & 3 read as under : “AND WHEREAS in the present disorganisation of the monetary systems of the world it is not possible to determine what will be suitable as a permanent basis for the Indian monetary system ; BUT WHEREAS it is expedient to make temporary provision on the basis of the existing monetary system, and to leave the question of the monetary standard best suited to India to be considered when the international monetary position has become sufficiently clear and stable to make it possible to frame permanent measures;”
†NOTIFICATION NO. S.O. 2214(E) [F.NO.12/1/2016-FSLRC(i)], dated 27-6-2016.—In exercise of the powers conferred by section 219 of the Finance Act, 2016 (28 of 2016), the Central Government hereby appoints the 27th day of June, 2016, as the date on which the provisions of Part I of Chapter XII of the said Act shall come into force.
2a. Substituted by the Adaptation of Laws order, 1950, w.e.f. 26-1-1950.
3.Words “except the State of Jammu and Kashmir” omitted by the Jammu and Kashmir (Extension of Laws) Act, 1956, w.e.f. 1-11-1956. Earlier the italicised words were substituted for “Part B States” by the Reserve Bank of India (Amendment) Act, 1951, w.e.f. 1-11-1951.
1
S. 2 RESERVE BANK OF INDIA ACT, 1934 2
(3) This section shall come into force at once, and the remaining provisions of this Act shall come into force on such date or dates4 as the 5[Central Government] may, by notification6 in the Gazette of India, appoint. Definitions.
2. In this Act, unless there is anything repugnant in the subject or context,—
(a) 7[***]
(ai) 7[***]
8[(aii)] “the Bank” means the Reserve Bank of India constituted by this Act;
9[(aiii) “Bank for International Settlements” means the body corporate established with the said name under the law of Switzerland in pursuance of an agreement dated the 20th January, 1930, signed at the Hague;]
10[(aiv) “bank note” means a bank note issued by the bank, whether in physical or digital form, under section 22;]
(b) “the Central Board” means the Central Board of Directors of the Bank ;
(bi) to (bv) 11[***]
12[(bva) “Consumer Price Index” means the Consumer Price Index Combined published by the Government of India from time to time;]
4. Sections 2 to 19, 47, 48, 50 to 52, 55 to 58 and 61 were brought into force on 1-1-1935 and the other sections on 1-4-1935.
5. Substituted for “Governor-General in Counsel” by the India and Burma (Burma Monetary Arrangements) order, 1937, w.e.f. 18-3-1937.
6. State of Sikkim vide Notification No. 208(E), dated 16-5-1975, w.e.f. 14-8-1976 and Notification S.O. 547(E), dated 13-8-1976, w.e.f. 14-8-1976.
7. Clauses (a) and (ai) omitted by the National Bank for Agriculture and Rural Development Act, 1981, w.e.f. 1-5-1982. Original clause (a) was inserted by the Banking Laws (Application to Co-operative Societies) Act, 1965, w.e.f. 1-3-1966 and later on substituted by the Reserve Bank of India (Amendment) Act, 1974, w.e.f. 13-12-1974.
8. Clause (aa) re-lettered as clause (aii) by the Banking Laws (Application to Co-operative Societies) Act, 1965, w.e.f. 1-3-1966. Earlier clause (aa) was inserted by the Agricultural Refinance Corporation Act, 1963, w.e.f. 1-5-1963.
9. Inserted by the Reserve Bank of India (Amendment) Act, 1974, w.e.f. 13-12-1974.
10. Inserted by the Finance Act, 2022, w.e.f. 30-3-2022.
11. Clauses (bi) to (bv) omitted by the National Bank for Agriculture and Rural Development Act, 1981, w.e.f. 1-5-1982. Prior to their omission, clauses (bi) to (bv) were substituted for clause (bb) by the Banking Laws (Application to Co-operative Societies) Act, 1965, w.e.f. 1-3-1966 and original clause (bb) was inserted by the Reserve Bank of India (Amendment) Act, 1955, w.e.f. 8-5-1955.
12. Inserted by the Finance Act, 2016, w.e.f. 27-6-2016.
13[14[(bvi)] “Deposit Insurance Corporation” means the Deposit Insurance Corporation established under section 3 of the Deposit Insurance Corporation Act, 1961 (47 of 1961);]
14[(bvii)] 15[***]
(bviii) 16[***]
17[(bviiia) “Exim Bank” means the Export-Import Bank of India established under the Export-Import Bank of India Act, 1981 (28 of 1981);]
18[(bix) “foreign currency” and “foreign exchange” have the meanings respectively assigned to them in the Foreign Exchange Regulation Act, 1973 (46 of 1973) ;
(c) “Industrial Finance Corporation” means the Industrial Finance Corporation of India established under the Industrial Finance Corporation Act, 1948 (15 of 1948);]
19[(ci) “inflation” means the year wise change in monthly Consumer Price Index expressed in terms of percentage;
(cii) “inflation target” means the inflation target determined in accordance with sub-section (1) of section 45ZA;]
20[(ca) “International Development Association” means the “Association” referred to in the International Development Association (Status, Immunities and Privileges) Act, 1960 (32 of 1960) ;
(cb) “International Finance Corporation” means the “Corporation” referred to in the International Finance Corporation (Status, Immunities and Privileges) Act, 1958 (42 of 1958) ;
(cc) “International Monetary Fund” and “International Bank for Reconstruction and Development” mean respectively the “International Fund” and
13. Inserted by the Deposit Insurance Corporation Act, 1961, w.e.f. 1-1-1962.
14. Clauses (bbb) and (bbbb) re-lettered as clauses (bvi) and (bvii), respectively, by the Banking Laws (Application to Co-operative Societies) Act, 1965, w.e.f. 1-3-1966. Earlier clause (bbb) was inserted by the Deposit Insurance Corporation Act, 1961, w.e.f. 1-1-1962 and clause (bbbb) was inserted by the Industrial Development Bank of India Act, 1964, w.e.f. 1-7-1964.
15. Omitted by the Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003, w.e.f. 2-7-2004.
16. Omitted by the National Bank for Agriculture and Rural Development Act, 1981, w.e.f. 12-7-1982. Earlier clause (bviii) was inserted by the Banking Laws (Application to Co-operative Societies) Act, 1965, w.e.f. 1-3-1966.
17. Inserted by the Export-Import Bank of India Act, 1981, w.e.f. 1-1-1982.
18. Clauses (bix) and (c) substituted for clause (c) by the Reserve Bank of India (Amendment) Act, 1978, w.e.f. 21-7-1978. Earlier clause (c) was amended by the Reserve Bank of India (Amendment) Act, 1951, w.e.f. 1-11-1951.
19. Inserted by the Finance Act, 2016, w.e.f. 27-6-2016†.
†NOTIFICATION NO. S.O. 2214(E)[F.NO.12/1/2016-FSLRC(i)], dated 27-6-2016.—In exercise of the powers conferred by section 219 of the Finance Act, 2016 (28 of 2016), the Central Government hereby appoints the 27th day of June, 2016, as the date on which the provisions of Part I of Chapter XII of the said Act shall come into force.
20. Clauses (ca), (cb) and (cc) inserted by the Reserve Bank of India (Amendment) Act, 1974, w.e.f. 13-12-1974.
the “International Bank”, referred to in the International Monetary Fund and Bank Act, 1945;]
20a[(cci) “Monetary Policy Committee” means the Committee constituted under sub-section (1) of section 45ZB;]
21[(ccc) “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 (61 of 1981);]
22[(ccci) “National Bank for Financing Infrastructure and Development” means the Institution established under section 3 of the National Bank for Financing Infrastructure and Development Act, 2021;
(cccii) “other development financial institution” means a development financial institution licensed under section 29 of the National Bank for Financing Infrastructure and Development Act, 2021;]
23[(cccc) “National Housing Bank” means the National Housing Bank established under section 3 of the National Housing Bank Act, 1987 (53 of 1987);]
20a[(cccci) “Policy Rate” means the rate for repo-transactions under sub-section (12AB) of section 17;]
(ci) to (civ) 24[***]
25[(cv) “Reconstruction Bank” means the Industrial Reconstruction Bank of India established under section 3 of the Industrial Reconstruction Bank of India Act, 1984 (62 of 1984);]
(d) “rupee coin” means rupees which are legal tender in 26[India] under the provisions of the 27[Coinage Act, 2011 (11 of 2011)] 27a[***] ;
20a. Inserted by the Finance Act, 2016, w.e.f. 27-6-2016.
†NOTIFICATION NO. S.O. 2214(E)[F.NO.12/1/2016-FSLRC(i)], dated 27-6-2016.—In exercise of the powers conferred by section 219 of the Finance Act, 2016 (28 of 2016), the Central Government hereby appoints the 27th day of June, 2016, as the date on which the provisions of Part I of Chapter XII of the said Act shall come into force.
21. Inserted by the National Bank for Agriculture and Rural Development Act, 1981, w.e.f. 1-51982.
22. Inserted by the National Bank for Financing Infrastructure and Development Act, 2021, w.e.f. 19-4-2021.
23. Inserted by the National Housing Bank Act, 1987, w.e.f. 9-7-1988.
24. Omitted by the National Bank for Agriculture and Rural Development Act, 1981, w.e.f. 1-5-1982. Earlier clauses (ci) to (civ) were inserted by the Banking Laws (Application to Co-operative Societies) Act, 1965, w.e.f. 1-3-1966 and clause (cia) was inserted by the Reserve Bank of India (Amendment) Act, 1974, w.e.f. 13-12-1974 and clauses (cii), (ciii) and (civ) was amended by the Banking Laws (Amendment) Act, 1968, w.e.f. 1-2-1969.
25. Inserted by the Industrial Reconstruction Bank of India Act, 1984, w.e.f. 20-3-1985. Earlier clause (cv) was omitted by the National Bank for Agriculture and Rural Development Act, 1981, w.e.f. 1-5-1982 and inserted by the Regional Rural Banks Act, 1976, w.r.e.f. 26-9-1975.
26. Substituted for “the States” by the Reserve Bank of India (Amendment) Act, 1951, w.e.f. 1-111951.
27. Substituted for “Indian Coinage Act, 1906 (3 of 1906)” by the Coinage Act, 2011, w.e.f. 28-32012.
27a. Word “and” omitted by the India and Burma (Burma Monetary Arrangements) order, 1937, w.e.f. 18-3-1937.
RESERVE BANK OF INDIA ACT, 1934 S. 2
(e) “scheduled bank” means a bank included in the Second Schedule ;
28[(el) “Small Industries Bank” means the Small Industries Development Bank of India established under section 3 of the Small Industries Development Bank of India Act, 1989 (39 of 1989);]
29[(ea) “Sponsor Bank” means a Sponsor Bank as defined in the Regional Rural Banks Act, 1976 (21 of 1976);]
30[31[(eb)] “State Bank” means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955);]
32[(f)] 33[***]
34[(fi) “State Financial Corporation” means any State Financial Corporation established under the State Financial Corporations Act, 1951 (63 of 1951);]
35[(g) “Unit Trust” means the Unit Trust of India established under section 3 of the Unit Trust of India Act, 1963 (52 of 1963);]
36[(h) “agricultural operations”, “central co-operative bank”, “co-operative society”, “crops”, “marketing of crops”, “pisciculture”, “regional rural bank” and “State co-operative bank” shall have the meanings respectively assigned to them in the National Bank for Agriculture and Rural Development Act, 1981 (61 of 1981);
(i) “co-operative bank”, “co-operative credit society”, “director”, “primary agricultural credit society”, “primary co-operative bank” and “primary credit society” shall have the meanings respectively assigned to them in Part V of the Banking Regulation Act, 1949 (10 of 1949).]
28. Inserted by the Small Industries Development Bank of India Act, 1989, w.e.f. 7-3-1990.
29. Inserted by the Regional Rural Banks Act, 1976, w.r.e.f. 26-9-1975.
30. Inserted by the State Bank of India Act, 1955, w.e.f. 1-7-1955. Earlier clause (ee) was omitted by the Reserve Bank of India (Amendment) Act, 1951, w.e.f. 1-11-1951 and later on amended by the Banking Laws (Application to Co-operative Societies) Act, 1965, w.e.f. 1-3-1966.
31. Existing clause (ei) re-lettered as clause (eb) by the Regional Rural Banks Act, 1976, w.r.e.f. 26-9-1975.
32. Clause (c) re-lettered as clause (f) by the Reserve Bank of India (Amendment) Act, 1951, w.e.f. 1-11-1951. Earlier clause (f) was amended by the States Re-organisation Act, 1956, w.e.f. 1-11-1956 and Banking Laws (Application to Co-operative Societies) Act, 1965, w.e.f. 1-3-1966.
33. Omitted by the National Bank for Agriculture and Rural Development Act, 1981, w.e.f. 1-5-1982.
34. Inserted by the Reserve Bank of India (Amendment) Act, 1978, w.e.f. 21-7-1978.
35. Reintroduced by the Unit Trust of India Act, 1963, w.e.f. 1-2-1964. Earlier clause (g) was inserted by the Reserve Bank of India (Amendment) Act, 1951, w.e.f. 1-11-1951 and was omitted by the Jammu and Kashmir (Extension of Laws) Act, 1956, w.e.f. 1-11-1956.
36. Inserted by the National Bank for Agriculture and Rural Development Act, 1981, w.e.f. 1-51982.
CHAPTER II
INCORPORATION, 37[CAPITAL], MANAGEMENT AND BUSINESS
Establishment and incorporation of Reserve Bank.
3. (1) A bank to be called the Reserve Bank of India shall be constituted for the purposes of taking over the management of the currency from the 38[Central Government] and of carrying on the business of banking in accordance with the provisions of this Act.
(2) The Bank shall be a body corporate by the name of the Reserve Bank of India, having perpetual succession and a common seal, and shall by the said name sue and be sued.
39[Capital of the Bank.
4. The capital of the Bank shall be five crores of rupees.]
Increase and reduction of share capital.
5. [Omitted by the Reserve Bank (Transfer to Public Ownership) Act, 1948, w.e.f. 1-11949.]
Offices, branches and agencies.
6. The Bank shall, as soon as may be, establish offices in Bombay, Calcutta, 40[Delhi and Madras] 41[***] and may establish branches or agencies in any other place in India 42[***] or, with the previous sanction of the 43[Central Government] elsewhere.
44[Management.
7. (1) The Central Government may from time to time give such directions to the Bank as it may, after consultation with the Governor of the Bank, consider necessary in the public interest.
(2) Subject to any such directions, the general superintendence and direction of the affairs and business of the Bank shall be entrusted to a Central Board of Directors which may exercise all powers and do all acts and things which may be exercised or done by the Bank.
45[(3) Save as otherwise provided in regulations made by the Central Board, the Governor and in his absence the Deputy Governor nominated by him in this behalf,
37. Substituted for “SHARE CAPITAL” by the Reserve Bank (Transfer to Public Ownership) Act, 1948, w.e.f. 1-1-1949.
38. Substituted for “Governor-General in Council” by the India and Burma (Burma Monetary Arrangements) order, 1937, w.e.f. 18-3-1937.
39. Substituted by the Reserve Bank (Transfer to Public Ownership) Act, 1948, w.e.f. 1-1-1949.
40. Substituted for “Delhi, Madras and Rangoon” by the Reserve Bank of India (Amendment) Act, 1947, w.e.f. 1-4-1947.
41. Words “and a branch in London” omitted by the Reserve Bank of India (Amendment) Act, 1955, w.e.f. 8-5-1955.
42. Words “or Burma” omitted by the Reserve Bank of India (Amendment) Act, 1947, w.e.f. 1-41947.
43. Substituted for “Governor-General in Counsel” by the India and Burma (Burma Monetary Arrangements) order, 1937, w.e.f. 18-3-1937.
44. Substituted by the Reserve Bank (Transfer to Public Ownership) Act, 1948, w.e.f. 1-1-1949.
45. Substituted by the Reserve Bank of India (Amendment) Act, 1951, w.r.e.f. 1-1-1949.
RESERVE BANK OF INDIA ACT, 1934 S. 8
shall also have powers of general superintendence and direction of the affairs and the business of the Bank, and may exercise all powers and do all acts and things which may be exercised or done by the Bank.]]
Composition of the Central Board and term of office of Directors.
8. (1) The Central Board shall consist of the following Directors, namely :—
(a) a Governor and 46-47[not more than four] Deputy Governors to be appointed by the Central Government ;
(
b) four Directors to be nominated by the Central Government, one from each of the four Local Boards as constituted by section 9;
(c) 48[ten] Directors to be nominated by the Central Government; and
(d) 49[two Government officials] to be nominated by the Central Government;
(2) The Governor and Deputy Governors shall devote their whole-time to the affairs of the Bank, and shall receive such salaries and allowances as may be determined by the Central Board, with the approval of the 50[Central Government]:
51[Provided that the Central Board may, if in its opinion it is necessary in the public interest so to do, permit the Governor or a Deputy Governor to undertake, at the request of the Central Government or any State Government, such part-time honorary work, whether related to the purposes of this Act or not, as is not likely to interfere with his duties as Governor or Deputy Governor, as the case may be:]
52[Provided further that the Central Government may, in consultation with the Bank, appoint a Deputy Governor as the Chairman of the National Bank, on such terms and conditions as that Government may specify.]
(3) A Deputy Governor and the Director nominated under clause (d) of sub-section (1) may attend any meeting of the Central Board and take part in its deliberations but shall not be entitled to vote :
53[Provided that when the Governor is, for any reason, unable to attend any such meeting, a Deputy Governor authorised by him in this behalf in writing may vote for him at that meeting.]
(4) The Governor and a Deputy Governor shall hold office for such term not exceeding five years as the 50[Central Government] may fix when appointing them, and shall be eligible for re-appointment.
46-47. Substituted for “three” by the Industrial Development Bank of India Act, 1964, w.e.f. 1-71964. Earlier “three” was substituted for “two” by the Reserve Bank of India (Amendment) Act, 1955, w.e.f. 8-5-1955.
48. Substituted for “six”, ibid.
49. Substituted for “one Government official” by the Factoring Regulation Act, 2011, w.e.f. 1-22012.
50. Substituted for “Governor-General in Council” by the India and Burma (Burma Monetary Arrangements) order, 1937, w.e.f. 18-3-1937.
51. Inserted by the Reserve Bank of India (Amendment) Act, 1962, w.e.f. 15-9-1962.
52. Inserted by the National Bank for Agriculture and Rural Development Act, 1981, w.e.f. 12-7-1982.
53. Substituted by the Reserve Bank of India (Amendment and Miscellaneous Provisions) Act, 1953, w.e.f. 30-12-1953.
54[A Director nominated under clause (c) of sub-section (1) shall, 55[***] hold office for a period of four years 56[and 57[shall be eligible for reappointment :
Provided that any such Director shall not be appointed for more than two terms, that is, for a maximum period of eight years either continuously or intermittently]].]
A Director nominated under clause (d) of sub-section (1) shall hold office during the pleasure of the 58[Central Government.]
(5) No act or proceeding of the Board shall be questioned on the ground merely of the existence of any vacancy in, or any defect in the constitution of, the Board.
59[(6) [Omitted by the Industrial Development Bank of India Act, 1964, w.e.f. 1-7-1964.]
(7) A retiring Director shall be eligible for re-nomination.]
59a[Local Boards, their constitution and functions.
9. (1) A Local Board shall be constituted for each of the four areas specified in the First Schedule and shall consist of five members to be appointed by the Central Government to represent, as far as possible, territorial and economic interests and the interest of co-operative and indigenous banks.
(2) The members of the Local Board shall elect from amongst themselves one person to be the Chairman of the Board.
60[(3) Every member of a Local Board shall hold office for a term of four years and 61[shall be eligible for reappointment:
Provided that any such member shall not be appointed for more than two terms, that is, for a maximum period of eight years either continuously or intermittently].]
(4) A Local Board shall advise the Central Board on such matters as may be generally or specifically referred to it and shall perform such duties as the Central Board may delegate to it.]
Disqualifications of Directors and members of Local Boards.
10. (1) No person may be a Director or a member of a Local Board who— (a) is a salaried Government official 62[***],63[***] or
54. Substituted by the Reserve Bank (Transfer to Public Ownership) Act, 1948, w.e.f. 1-1-1949.
55. Words “subject to the provisions of sub-section (6)” omitted by the Industrial Development Bank of India Act, 1964, w.e.f. 1-7-1964.
56. Inserted by the Reserve Bank of India (Amendment) Act, 1974, w.e.f. 13-12-1974.
57. Substituted for “thereafter until his successor shall have been nominated” by the Banking Laws (Amendment) Act, 2012, w.e.f. 18-1-2013.
58. Substituted for “Governor-General in Council” by the India and Burma (Burma Monetary Arrangements) order, 1937, w.e.f. 18-3-1937.
59. Inserted by the Reserve Bank (Transfer to Public Ownership) Act, 1948, w.e.f. 1-1-1949.
59a. Substituted by the Reserve Bank (Transfer to Public Ownership) Act, 1948, w.e.f. 1-1-1949.
60. Substituted by the Reserve Bank of India (Amendment) Act, 1974, w.e.f. 13-12-1974.
61. Substituted for “thereafter until his successor shall have been appointed and shall be eligible for reappointment” by the Banking Laws (Amendment) Act, 2012, w.e.f. 18-1-2013.
62. Words “or a Salaried Official of a State in India” omitted by the Adaptation of Laws order 1950, w.e.f. 26-1-1950.
63. Words “or Burma” omitted by the Reserve Bank of India (Amendment) Act, 1947, w.e.f. 1-41947.
(b) is, or at any time has been, adjudicated an insolvent, or has suspended payment or has compounded with his creditors, or (c) is found lunatic or becomes of unsound mind, or (d) is an officer or employee of any bank, or
64[(e) is a director of a banking company within the meaning of clause (c) of section 5 of the Banking 65[Regulation] Act, 1949 (10 of 1949) or of a co-operative bank.]
(2) No two persons who are partners of the same mercantile firm, or are Directors of the same private company, or one of whom is the general agent of or holds a power of procuration from the other, or from a mercantile firm of which the other is a partner, may be Directors or members of the same Local Board at the same time.
(3) Nothing in clause (a), clause (d) or clause (e) of sub-section (1) shall apply to the Governor, or to a Deputy Governor or to the Director nominated under clause (d) of sub-section (1) of section 8.
Removal from and vacation of office.
11. (1) The 66[Central Government] may remove from office the Governor, or a Deputy Governor or any other Director 67[or any member of a Local Board].
68[***]
69[(2) A Director nominated under clause (b) or clause (c) of sub-section (1) of section 8 shall cease to hold office if without leave from the Central Board he absents himself from three consecutive meetings of the Board convened under sub-section (1) of section 13.]
(3) The 66[Central Government] shall remove from office any Director, and the Central Board shall remove from office any member of a Local Board, if such Director or member becomes subject to any of the disqualifications specified in sub-section (1) or sub-section (2) of section 10.
(4) A Director or member of a Local Board removed or ceasing to hold office under the foregoing sub-section shall not be eligible for re-appointment either as Director or as member of a Local Board until the expiry of the term for which his appointment was made.
64. Substituted by the Banking Laws (Application to Co-operative Societies) Act, 1965, w.e.f. 1-31966. Earlier clause (e) was amended by the State Bank of India Act, 1955, w.e.f. 1-7-1955 and State Bank of Hyderabad Act, 1956, w.r.e.f. 22-10-1956.
65. Substituted for “Companies” by the Reserve Bank of India (Amendment) Act, 1974, w.e.f. 13-12-1974.
66. Substituted for “Governor-General in Council” by the India and Burma (Burma Monetary Arrangements) order, 1937, w.e.f. 18-3-1937.
67. Inserted by the Reserve Bank of India (Amendment) Act, 1951, w.e.f. 1-11-1951.
68. Proviso omitted by the Reserve Bank (Transfer to Public Ownership) Act, 1948, w.e.f. 1-1-1949.
69. Substituted, ibid.
