Reserve Bank of India Act, 1934

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5	[Repealed by Act No. 62 of 1948, w.e.f. 1st.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14	General meetings [Repealed]
15	First constitution of the Central Board [Repealed]
16	First constitution of Local Boards [Repealed]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]