THE RESERVE BANK OF INDIA ACT, 1934. ACT NO. 2 OF 1934, 6th March, 1934.
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 India and generally to operate the currency and credit system of the country to its advantage;
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:—
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| Sections | Particulars |
| 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| 5 | [Repealed by Act No. 62 of 1948, w.e.f. 1st. January, 1949] |
| 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| 14 | General meetings [Repealed] |
| 15 | First constitution of the Central Board [Repealed] |
| 16 | First constitution of Local Boards [Repealed] |
| 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 |
| 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 |
| 23 | Issue department |
| 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 of 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 | [Repealed by the Reserve Bank of India (Amendment) Act, 1974] |
| 33 | Assets of the issue department |
| 34 | Liabilities of the issue department |
| 35 | [Repealed by Act No. 62 of 1948, w.e.f. 1st. January, 1949] |
| 36 | [Repealed by Act No. 55 of 1963, w.e.f. 1st. February, 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 | Obligation to provide remittance between India and Burma : repealed by Act No. 11 of 1947, w.e.f. 1st. April, 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 | Power to require returns from co-operative banks :[repealed by the Banking Laws (Application to Co-operative Societies) Act, 1965, w.e.f. 1st. March 1966] |
| 45 | Appointment of agents |
| Chapter III A | 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 | Penalties: [repealed by the Reserve Bank of India (Amendment) Act, 1974] |
| Chapter III B | Provisions Relating To Non-Banking Institutions Receiving Deposits And Financial Institutions |
| 45H | Chapter III-B 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 |
| 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 |
| 45MB | Power of bank to prohibit acceptance of deposit and alienation of assets |
| 45MC | Power of bank to file winding up petition |
| 45N | Inspection |
| 45NA | Deposits not to be solicited by unauthorized persons |
| 45NB | Disclosure of information |
| 45NC | Power of bank to exempt |
| 45-O | Penalties: [repealed by the Reserve Bank of India (Amendment) Act, 1974] |
| 45P | Cognizance of offences: [repealed by the Reserve Bank of India (Amendment) Act, 1974] |
| 45Q | Chapter III B 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 IV | General Provisions |
| 46 | Contribution by Central Government to the reserve fund |
| 46A | Contribution to National Rural Credit (Long Term Operations) Fund and National Rural Credit (Stabilization) Fund |
| 46B | [Repealed] |
| 46C | National Industrial Credit (Long Term Operations) Fund |
| 46D | National Housing Credit (Long Term Operations) Fund |
| 47 | Allocation of surplus profits |
| 48 | Exemption of bank from income-tax and super-tax |
| 49 | Publication of bank rate |
| 50 | Auditors |
| 51 | Appointment of special auditors by government |
| 52 | Powers and duties of auditors |
| 53 | Returns |
| 54 | Rural credit and development |
| 54A | Delegation of powers |
| 54AA | Power of bank to depute its employees to other institutions |
| 55 | Reports by the bank: repealed by Act No. 62 of l948, w.e.f. 1st. January, 1949 |
| 56 | Power to require declaration as to ownership of registered shares : repealed by Act No. 62 of l948, w.e.f. 1st. January, 1949 |
| 57 | Liquidation of the Bank |
| 58 | Power of the Central Board to make regulations |
| 58A | Protection of action taken in good faith |
| Chapter V | Penalties |
| 58B | Penalties |
| 58C | Offences by companies |
| 58D | Application of section 58B barred |
| 58E | Cognizance of offences |
| 58F | Application of fine |
| 58G | Power of bank to impose fine |
| 59-61 | [Repealed by Act No. 20 of 1937] |
| Schedule | |
| Schedule I | Scheduled Area |
| Schedule II | Scheduled Banks |
| Schedule III | [Repealed by Act No. 23 of 1955, w.e.f. 1/7/1955] |
| Schedule IV | [Repealed by Act No. 62 of 1948, w.e.f. 1/1/1949] |
| Schedule V | [Repealed by the M.O. 1937] |