{"id":574,"date":"2022-04-22T14:12:52","date_gmt":"2022-04-22T14:12:52","guid":{"rendered":"https:\/\/udyogmentor.com\/?p=574"},"modified":"2022-04-22T14:12:52","modified_gmt":"2022-04-22T14:12:52","slug":"the-reserve-bank-of-india-act-1934","status":"publish","type":"post","link":"https:\/\/udyogmentor.com\/community\/the-reserve-bank-of-india-act-1934\/","title":{"rendered":"The Reserve Bank of India Act, 1934"},"content":{"rendered":"

The Reserve Bank of India Act, 1934<\/strong><\/h3>\n

CHAPTER I<\/strong><\/p>\n

PRELIMINARY<\/strong><\/p>\n

1. Short title, extent and commencement.<\/p>\n

2. Definitions.<\/p>\n

CHAPTER II<\/strong><\/p>\n

INCORPORATION, CAPITAL, MANAGEMENT AND BUSINESS<\/strong><\/p>\n

3. Establishment and incorporation of Reserve Bank.<\/p>\n

4. Capital of the Bank.<\/p>\n

5. [Repealed].<\/p>\n

6. Offices, branches and agencies.<\/p>\n

7. Management.<\/p>\n

8. Composition of the Central Board, and term of office of Directors.<\/p>\n

9. Local Boards, their constitution and functions.<\/p>\n

10. Disqualifications of Directors and members of Local Boards.<\/p>\n

11. Removal from and vacation of office.<\/p>\n

12. Casual Vacancies and absences<\/p>\n

13. Meetings of the Central Board.<\/p>\n

14 to 16. [General meetings. First constitution of the Central Board. First constitution of Local Board.]<\/p>\n

17. Business which the Bank may transact.<\/p>\n

18. Power of direct discount.<\/p>\n

18A. Validity of loan or advance not to be questioned.<\/p>\n

19. Business which the Bank may not transact.<\/p>\n

CHAPTER III<\/strong><\/p>\n

CENTRAL BANKING FUNCTIONS<\/strong><\/p>\n

20. Obligation of the Bank to transact Government business.<\/p>\n

20-A [Repealed]<\/p>\n

21. Bank to have the right to transact Government business in India.<\/p>\n

21A. Bank to transact Government business of States on agreement.<\/p>\n

21B. Effect of agreements made between the Bank and certain States before the 1st November, 1956.<\/p>\n

22. Right to issue bank notes.<\/p>\n

23. Issue Department.<\/p>\n

24. Denominations of notes.<\/p>\n

25. Form of bank notes.<\/p>\n

26. Legal tender character of notes.<\/p>\n

26A. Certain bank notes to cease to be legal tender.<\/p>\n

27. Re-issue of notes.<\/p>\n

28. Recovery of notes lost, stolen, mutilated or imperfect.<\/p>\n

28A. Issue of special bank notes and special one-rupee notes in certain cases.<\/p>\n

29. Bank exempt from stamp duty on bank notes.<\/p>\n

30. Powers of Central Government to supersede Central Board.<\/p>\n

31. Issue of demand bills and notes.<\/p>\n

32. [Penalty.]<\/p>\n

33. Assets of the Issue Department.<\/p>\n

34. Liabilities of the Issue Department.<\/p>\n

35. [Repealed.]<\/p>\n

36. [Omitted.]<\/p>\n

37. Suspension of assets requirements as to foreign securities.<\/p>\n

38. Obligations of Government and the Bank in respect of rupee coin.<\/p>\n

39. Obligation to supply different forms of currency.<\/p>\n

40. Transactions in foreign exchange.<\/p>\n

41A. [Repealed]<\/p>\n

42. Cash reserves of scheduled banks to be kept with the Bank.<\/p>\n

43. Publication of consolidated statement by the Bank.<\/p>\n

43A. Protection of action taken in good faith.<\/p>\n

44. [Omitted.]<\/p>\n

45. Appointment of Agents.<\/p>\n

CHAPTER IIIA<\/strong><\/p>\n

COLLECTION AND FURNISHING OF CREDIT INFORMATION<\/strong><\/p>\n

45A. Definitions.<\/p>\n

45B. Power of Bank to collect credit information.<\/p>\n

45C. Power to call for returns containing credit information.<\/p>\n

45D. Procedure for furnishing credit information to banking companies.<\/p>\n

45E. Disclosure of information prohibited.<\/p>\n

45F. Certain claims for compensation barred.<\/p>\n

45G. [Penalties.]<\/p>\n

CHAPTER IIIB<\/strong><\/p>\n

PROVISIONS RELATING TO NON-BANKING INSTITUTIONS RECEIVING DEPOSITS AND FINANCIAL INSTITUTIONS<\/strong><\/p>\n

45H. Chapter IIIB not to apply in certain cases.<\/p>\n

45I. Definitions.<\/p>\n

45-IA. Requirement of registration and net owned fund.<\/p>\n

45-IB. Maintenance of percentage of assets.<\/p>\n

45-IC. Reserve fund.<\/p>\n

45-ID. Power of Bank to remove directors from office.<\/p>\n

45-IE. Supersession of Board of directors of non-banking financial company (other than Government Company).<\/p>\n

45J. Bank to regulate or prohibit issue of prospectus or advertisement soliciting deposits of money.<\/p>\n

45JA. Power of Bank to determine policy and issue directions.<\/p>\n

45K. Power of Bank to collect information from non-banking institutions as to deposits and to give directions.<\/p>\n

45L. Power of Bank to call for information from financial institutions and to give directions.<\/p>\n

45M. Duty of non-banking institutions to furnish statements, etc., required by Bank.<\/p>\n

45MA. Powers and duties of auditors.<\/p>\n

45MAA. Power to take action against auditors.<\/p>\n

45MB. Power of Bank to prohibit acceptance of deposit and alienation of assets.<\/p>\n

45MBA. Resolution of non-banking financial company.<\/p>\n

45MC. Power of Bank to file winding up petition.<\/p>\n

45N. Inspection.<\/p>\n

45NA. Deposits not to be solicited by unauthorised person.<\/p>\n

45NAA. Power in respect of group companies<\/p>\n

45NB. Disclosure of information.<\/p>\n

45NC. Power of Bank to exempt.<\/p>\n

45O. [Omitted.]<\/p>\n

45P. [Omitted.]<\/p>\n

45Q. Chapter IIIB to override other laws.<\/p>\n

45QA. Power of Company Law Board to offer repayment of deposit.<\/p>\n

45QB. Nomination by depositors.<\/p>\n

CHAPTER IIIC<\/strong><\/p>\n

PROHIBITION OF ACCEPTANCE OF DEPOSITS BY UNINCORPORATED<\/strong><\/p>\n

BODIES<\/strong><\/p>\n

45R. Interpretation.<\/p>\n

45S. Deposits not to be accepted in certain cases.<\/p>\n

45T. Power to issue search warrants.<\/p>\n

CHAPTER IIID<\/strong><\/p>\n

REGULATION OF TRANSACTIONS IN DERIVATIVES, MONEY MARKET INSTRUMENTS, SECURITIES, ETC.<\/strong><\/p>\n

45U. Definitions.<\/p>\n

45V. Transactions in derivatives.<\/p>\n

45W. Power to regulate transactions in derivatives, money market instruments, etc.<\/p>\n

45X. Duty to comply with directions and furnish information.<\/p>\n

CHAPTER IIIE<\/strong><\/p>\n

JOINT MECHANISM<\/strong><\/p>\n

45Y. Joint Mechanism.<\/p>\n

CHAPTER IIIF<\/strong><\/p>\n

MONETARY POLICY<\/strong><\/p>\n

45Z. Provisions of this Chapter to override other provisions of Act.<\/p>\n

45ZA. Inflation target.<\/p>\n

45ZB. Constitution of Monetary Policy Committee.<\/p>\n

45ZC. Eligibility and selection of Members appointed by Central Government.<\/p>\n

45ZD. Terms and conditions of appointment of Members of Monetary Policy Committee.<\/p>\n

45ZE. Removal of Members of Monetary Policy Committee.<\/p>\n

45ZF. Vacancies etc., not to invalidate proceedings of Monetary Policy Committee.<\/p>\n

45ZG. Secretary to Monetary Policy Committee.<\/p>\n

45ZH. Information for Monetary Policy Committee Members.<\/p>\n

45ZI. Meetings of Monetary Policy Committee.<\/p>\n

45ZJ. Steps to be taken to implement decisions of Monetary Policy Committee.<\/p>\n

45ZK. Publication of decisions.<\/p>\n

45ZL. Publication of proceedings of meeting of Monetary Policy Committee.<\/p>\n

45ZM. Monetary Policy Report.<\/p>\n

45ZN. Failure to maintain inflation target.<\/p>\n

45ZO. Power to make rules.<\/p>\n

CHAPTER IV<\/strong><\/p>\n

GENERAL PROVISIONS<\/strong><\/p>\n

46. Contribution by Central Government to the Reserve Fund.<\/p>\n

46A. Contribution to National Rural Credit (Long Term Operations) Fund and National Rural Credit (Stabilisation) Fund.<\/p>\n

46B. [Repealed]<\/p>\n

46C. National Industrial Credit (Long Term Operations) Fund.<\/p>\n

46D. National Housing Credit (Long Term Operations) Fund.<\/p>\n

47. Allocation of surplus profits.<\/p>\n

48. Exemption of Bank from income-tax and super-tax.<\/p>\n

49. Publication of bank rate.<\/p>\n

50. Auditors.<\/p>\n

51. Appointment of special auditors by Government.<\/p>\n

52. Powers and duties of auditors.<\/p>\n

53. Returns.<\/p>\n

54. Rural Credit and Development.<\/p>\n

54A. Delegation of powers.<\/p>\n

54AA. Power of Bank to depute its employees to other institutions.<\/p>\n

55 and 56. [Reports by the Bank. Power to require declaration as to ownership of registered shares.]<\/p>\n

57. Liquidation of the Bank.<\/p>\n

58. Power of the Central Board to make regulations.<\/p>\n

58A. Protection of action taken in good faith.<\/p>\n

CHAPTER V<\/strong><\/p>\n

PENALTIES<\/strong><\/p>\n

58B. Penalties.<\/p>\n

58C. Offences by companies.<\/p>\n

58D. Application of section 58B barred.<\/p>\n

58E. Cognizance of offences.<\/p>\n

58F. Application of fine.<\/p>\n

58G. Power of Bank to impose fine.<\/p>\n

59 to 61. [Amendment of Act 3 of 1906. Repeals, Amendment of section 11, Act 7 of 1913.]<\/p>\n

THE FIRST SCHEDULE- Areas served by various local boards<\/p>\n

THE SECOND SCHEDULE- Scheduled banks<\/p>\n

THE THIRD SCHEDULE- [REPEALED]<\/p>\n

THE FOURTH SCHEDULE- [REPEALED]<\/p>\n","protected":false},"excerpt":{"rendered":"

The Reserve Bank of India Act, 1934 CHAPTER I PRELIMINARY 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. [Repealed]. 6. Offices, branches and agencies. 7. Management. 8. Composition of the Central Board, and term of… <\/p>\n

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