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Bar News Acts League

The Reserve Bank of India Act, 1934

Act ID: 1934

The Reserve Bank of India Act, 1934

"An Act to constitute a Reserve Bank of India to regulate monetary policy and supervise the banking system."

Table of Contents

105 Sections

Ch. IP

reliminary

S.1Short title, extent and commencement S.2Definitions S.41Power of Reserve Bank to determine policy

Ch. IIIn

corporation, Capital, Management and Business

S.3Establishment and incorporation of Reserve Bank S.4Capital of the Bank S.5Increase and reduction of share capital S.6Offices, branches and agencies S.7Management S.8Composition of the Central Board, and term of office of Directors S.9Local Boards, their constitution and functions S.10Disqualifications of Directors and members of Local Boards S.11Removal from and vacation of office S.12Casual vacancies and absences S.13Meetings of the Central Board S.14General meetings S.15First constitution of the Central Board S.16First constitution of local board S.17Business which the Bank may transact S.18Power of direct discount S.18AValidity of loan or advance not to be questioned S.19Business which the Bank may not transact

Ch. IIICe

ntral Banking Functions

S.20Obligation of the Bank to transact Government business S.21Bank to have the right to transact Government business in India S.21ABank to transact Government business of States on agreement S.21BEffect of agreements made between the Bank and certain States before the 1st November, 1956 S.22Right to issue bank notes S.23Issue Department S.24Denominations of notes S.25Form of bank notes S.26Legal tender character of notes S.26ACertain bank notes to cease to be legal tender S.27Re-issue notes S.28Recovery of notes lost, stolen, mutilated or imperfect S.28AIssue of special bank notes and special one rupee notes in certain cases S.29Bank exempt from stamp duty on bank notes S.30Powers of Central Government to supersede Central Board S.31Issue of demand bills and notes S.32Penalty S.33Assets of the Issue Department S.34Liabilities of Issue Department S.35Initial assets and liabilities S.36Method of dealing with fluctuations in rupee coin assets S.37Suspension of assets requirements as to foreign securities S.38Obligations of Government and the Bank in respect of rupee coin S.39Obligation to supply different forms of currency S.40Transactions in foreign exchange S.41AObligation to provide remittance between India and Burma S.42Cash reserves of scheduled banks to be kept with the Bank S.43Publication of consolidated statement by the Bank S.43AProtection of action taken in good faith S.44Power to require returns from co-operative banks S.45Appointment of agents

Ch. IIIA

Collection and Furnishing of Credit Information

S.45ADefinitions S.45BPower of Bank to collect credit information S.45CPower to call for returns containing credit information S.45DProcedure for furnishing credit information to banking companies S.45EDisclosure of information prohibited S.45FCertain claims for compensation barred S.45GPenalties.

Ch. IIIB

Provisions Relating to Non-banking Institutions Receiving Deposits and Financial Institutions

S.45HChapter IIIB not to apply in certain cases S.45IDefinitions S.45JBank to regulate or prohibit issue of prospectus or advertisement soliciting deposits of money S.45KPower of Bank to collect information from non-banking institutions as to deposits and to give directions S.45LPower of Bank to call for information from financial institutions and to give directions S.45MDuty of non-banking institutions to furnish statements, etc., required by Bank S.45NInspection S.45OPenalties S.45PCognizance of offencs S.45QChapter IIIB to override other laws

Ch. IIICP

rohibition of Acceptance of Deposits by Unincorporated Bodies

S.45RInterpretation S.45SDeposits not to be accepted in certain cases S.45TPower to issue search warrants

Ch. IIIDR

egulation of Transactions in Derivatives, Money Market Instruments or Securities, ETC.

S.45UDefinitions S.45VTransactions in derivatives S.45WPower to regulate transactions in derivatives, money market instruments, etc S.45XDuty to comply with directions and furnish information

Ch. IIIE

Joint Mechanism

S.45YJoint Mechanism S.45ZProvisions of this Chapter to override other provisions of Act

Ch. IVG

eneral Provisions

S.46Contribution by Central Government to the Reserve Fund S.46AContribution to National Rural Credit (Long Term Operations) Fund and National Rural Credit (Stabilisation) Fund S.46CNational Industrial Credit (Long Term Operations) Fund S.46DNational Housing Credit (Long Term Operations) Fund S.47Allocation of surplus profits S.48Exemption of Banks from income-tax and super-tax S.49Publication of Bank rate S.50Auditors S.51Appointment of special auditors by Government S.52Powers and duties of auditors S.53Returns S.54Rural Credit and Development S.54ADelegation of powers S.55Reports by the Bank S.56Power to require declaration as to ownership of registered shares S.57Liquidation of the Bank S.58Power of the Central Board to make regulations S.58AProtection of action taken in good faith

Ch. VP

enalties

S.58BPenalties S.58COffences by companies S.58DApplication of section 58B barred S.58ECognizance of offences S.58FApplication of fine S.58GPower of Bank to impose fine S.59Amendment of Act 3 of 1906 S.60Repeals S.61Amendment of section II, Act VII of 1913