The Reserve Bank of India Act, 1934
# THE RESERVE BANK OF INDIA ACT, 1934

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# ARRANGEMENT OF SECTIONS

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CHAPTER I


PRELIMINARY


SECTIONS

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. [Omitted.].

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. [Omitted.].

15. [Omitted.].

16. [Omitted.].

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.].

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.
22A. Non-applicability of certain provisions to digital form of bank notes.
23. Issue Department.

Subject to verification and confirmation by the Department.


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SECTIONS

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 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. [Omitted.].

33. Assets of the Issue Department.

34. Liabilities of Issue Department.

35. [Omitted.].

36. [Omitted.].

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.].

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.].

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.].

CHAPTER III B

PROVISIONS RELATING TO NON-BANKING INSTITUTIONS RECEIVING DEPOSITS AND FINANCIAL

INSTITUTIONS

45H. Chapter IIIB not to apply in certain cases.


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SECTIONS

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.

45MAA. 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 person.

45NAA. Power in respect of group companies.

45NB. Disclosure of information.

45NC. Power of Bank to exempt.

45-O. [Omitted.].

45P. [Omitted.].

45Q. Chapter IIIB to override other laws.

45QA. Power of Company Law Board to offer repayment of deposit.

45QB. Nomination by depositors.


CHAPTER IIIC


PROHINITION 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.


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SECTIONS

45V. Transactions in derivatives.

45W. Power to regulate transactions in derivatives, money market instruments, etc.

45X. Duty to comply with directions and furnish information.

CHAPTER IIIE

JOINT MECHANISM

45Y. Joint Mechanism.


CHAPTER IIIF


MONETARY POLICY


45Z. Provisions of this Chapter to override other provisions of Act.

45ZA. Inflation target.

45ZB. Constitution of Monetary Policy Committee.

45ZC. Eligibility and selection of Members appointed by Central Government.

45ZD. Terms and conditions of appointment of Members of Monetary Policy Committee.

45ZE. Removal of Members of Monetary Policy Committee.

45ZF. Vacancies, etc., not to invalidate proceedings of Monetary Policy Committee.

45ZG. Secretary to Monetary Policy Committee.

45ZH. Information for Monetary Policy Committee Members.

45Z-I. Meetings of Monetary Policy Committee.

45ZJ. Steps to be taken to implement decision of Monetary Policy Committee.

45ZK. Publication of decisions.

45ZL. Publication of proceedings of meeting of Monetary Policy Committee.

45ZM. Monetary Policy Report.

45ZN. Failure to maintain inflation target.

45ZO. Power to make rules.

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

(Stabilisation) Fund.

46C. National Industrial Credit (Long Term Operations) Fund.

46D. National Housing Credit (Long Term Operations) Fund.

47. Allocation of surplus profits.

48. Exemption of Banks from income-tax and super-tax.

49. Publication of Bank rate.

50. Auditors.

51. Appointment of special auditors by Government.


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SECTIONS

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. [Omitted.].

56. [Omitted.].

57. Liquidation of the Bank.

57A. Powers of Bank not to apply to International Financial Services Centre.

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. [Repealed.].

60. [Repealed.].

61. [Repealed.].

THE FIRST SCHEDULE.

THE SECOND SCHEDULE.

THE THIRD SCHEDULE.—[Omitted.].

THE FOURTH SCHEDULE.—[Omitted.].

THE FIFTH SCHEDULE.—[Repealed.].


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# THE RESERVE BANK OF INDIA ACT, 1934


# ACT NO. 2 OF 1934[1]



[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 [2][India] and generally to operate
the currency and credit system of the country to its advantage;

3[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


**1. Short title, extent and commencement.—(1) This Act may be called the Reserve Bank of India**

Act, 1934.

4[(2) It extends to the whole of India 5***.]

(3) This section shall come into force at once, and the remaining provisions of this Act shall come

into force on such date or dates[6] as the [7][Central Government] may, by notification in the Gazette of
India, appoint.

**2. Definitions.—In this Act, unless there is anything repugnant in the subject or context,—**

8*     -     -     -     
9[(aii)] “the Bank” means the Reserve Bank of India constituted by this Act;
10[(aiii)] “Bank for International Settlements” means by 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;]

11[(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;

Subject to verification and confirmation by the Department.
1. For the functioning of the Reserve Bank in or in relation to Burma, after the separation of that country from India, _see the_

M.O. 1937.
This Act was extended to Berar by Act 4 of 1941; to Goa, Daman and Diu by Reg. 6 of 1962; to Dadra and Nagar Haveli by
Reg. 6 of 1963, s. 2 and Schedule I (w.e.f. 1-7-1965) and to Lakshadweep by Reg. 8 of 1965, s. 3 and Schedule to the State of
Sikkim: _vide Notification No. S.O. 208 (E), dated 15-5-1975, Extraordinary, Pt. II, s. 3 (ii), p. 1213 and came into force in_
Sikkim (w.e.f. 14-8-1976); vide Notification No. S.O. 547 (E), dated 13-8-1976.
This Act has been supplemented by Act 28 of 1964.

2. Subs. by the A.O. 1948, for “British India”.
3. Subs. by 28 of 2016, s. 220, for paragraphs 2 and 3 (w.e.f. 27-6-2016).
4. Subs. by the A.O. 1950, for sub-section (2).
5. The words “except the State of Jammu and Kashmir” omitted by Act 62 of 1956, s. 2 and the Schedule (w.e.f. 1-11-1956).
6. Sections 2 to 19, 47, 50 to 52, 55 to 58 and 61 were brought into force on 1st January, 1935,see Gazette of India, 1934, Pt. I, p.

1369, and the other sections on 1st April, 1935, seeibid., 1935, Pt. I, p. 538.

7. Subs. by the M.O. 1937, for “G.G. in C”.
8. Clauses (a) and (ai) omitted by Act 61 of 1981, s. 61 and the Second Schedule (w.e.f. 12-7-1982).
9. Clause (aa) re-lettered as clause (aii) by Act 23 of 1965, s. 2 (w.e.f. 1-3-1966).
10. Ins. by Act 51 of 1974, s. 2 (w.e.f. 13-12-1974).
11. Ins. by Act 6 of 2022, s. 125 (w.e.f. 30-3-2022).


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1*     -     -     -     
2[(bva) “Consumer Price Index” means the Consumer Price Index Combined published by the

Government of India from time to time;]

3[4[(bvi)] “Deposit Insurance Corporation” means the Deposit Insurance Corporation established

under section 3 of the Deposit Insurance Corporation Act, 1961 (47 of 1961);]

5*     -     -     -     
6*     -     -     -     
7[(bviiia)“Exim Bank” means the Export-Import Bank of India established under the Export
Import Bank of India Act, 1981 (28 of 1981);]

8[(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);]

2[(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;]

9 [(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

andDevelopment" means respectively the “International Fund” and the “International Bank”, referred
to in the International Monetary Fund and Bank Act, 1945;]

2[(cci) “Monetary Policy Committee” means the Committee constituted under sub-section (1) of

section 45ZB;]

10 [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);]

11[(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;]

12
[(cccc) “National Housing Bank” means the National Housing Bank established under

section 3 of the National Housing Bank Act, 1987 (53 of 1987);]

2[(cccci) “Policy Rate” means the rate for repo-transactions under sub-section (12AB) of section 17;]
13*     -     -     -     
1. Clauses (bi), (bii), (biii), (biv) and (bv) omitted by Act 61 of 1981, s. 61 and the Second Schedule (w.e.f. 12-7-1982). Earlier

these clauses were substituted by Act 23 of 1965, s. 2, for clause (bb) (w.e.f. 1-3-1966).

2. Ins. by Act 28 of 2016, s. 221 (w.e.f. 27-6-2016).
3. Ins. by Act 47 of 1961, s. 2 and the Second Schedule (w.e.f. 1-1-1962).
4. Clause (bbb) re-lettered as clause (bvi) thereof by Act 23 of 1965, s. 2 (w.e.f. 1-3-1966).
5. Clause (bvii) omitted by Act 53 of 2003, s. 12 and the Schedule (w.e.f. 2-7-2004).
6. Clause (bviii) omitted by Act 61 of 1981, s. 61 and the Second Schedule (w.e.f. 12-7-1982).
7. Ins. by Act 28 of 1981, s. 40 and the Second Schedule (w.e.f. 1-1-1982).
8. Subs. by Act 24 of 1978, s. 3, for clause (c) (w.e.f. 21-7-1978).
9. Ins. by Act 51 of 1974, s. 2 (w.e.f. 13-12-1974).
10. Ins. by Act 61 of 1981, s. 61 and the Second Schedule (w.e.f. 12-7-1982).
11. Ins. by Act 17 of 2021, s. 47 and the Second Schedule (w.e.f. 19-4-2021).
12. Ins. by Act 53 of 1987, s. 56 and the Second Schedule (w.e.f. 9-7-1988).
13. Clauses (ci), (cia), (cii), (ciii), (civ), (cv) omitted by Act 61 of 1981, s. 61 and the Second Schedule (w.e.f. 12-7-1982).


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1[(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 [2]*** rupees which are legal tender [3][in [4][India]] under the provisions of

the Indian Coinage Act, 1906 (3 of 1906);[5]***

(e) “scheduled bank” means a bank included in the Second Schedule;

6[(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);]

7[(ea) “Sponsor Bank” means a Sponsor Bank as defined in the Regional Rural Banks Act, 1976

(21 of 1976);]

8[9[(eb)] “State Bank” means the State Bank of India constituted under the State Bank of India

Act, 1955 (23 of 1955);]


10* - - - 

11[(fi) “State Financial Corporation” means any State Financial Corporation established under the

State Financial Corporations Act, 1951 (63 of 1951);]


12* - - - 

13[(g) “Unit Trust” means the Unit Trust of India established under section 3 of the Unit Trust of

India Act, 1963 (52 of 1963);]

14 [(h) “agricultural operations”, “central co-operative bank”, “co-operative society”, “crops”,

“marketing of corps”, “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).]


CHAPTER II


INCORPORATION, [15][CAPITAL], MANAGEMENT AND BUSINESS


**3. Establishment and incorporation of Reserve Bank.—(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
16[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.

1. Ins. by Act 62 of 1984, s. 71 and the Third Schedule (w.e.f. 20-3-1985).
2. The word “silver” omitted by Act 62 of 1948, s. 7 and the Schedule (w.e.f. 1-1-1949).
3. Ins. by the M.O. 1937.
4. Subs. by Act 32 of 1951, s. 2, for “the States” (w.e.f. 1-11-1951).
5. The word “and” omitted by the M.O. 1937.
6. Ins. by Act 39 of 1989, s. 53 and the Second Schedule (w.e.f. 7-3-1990).
7. Ins. by Act 21 of 1976, s. 33 (w.e.f. 26-9-1975).
8. Ins. by Act 23 of 1955, s. 52 and the Third Schedule (w.e.f. 1-7-1955). Earlier clause (ee) inserted by the A.O. 1950 which was

later omitted by Act 32 of 1951, s. 4 (w.e.f. 1-11-1951).

9. Clause (ee) re-lettered as clause (eb) thereof by Act 21 of 1976, s. 33 (w.e.f. 26-9-1975).
10. Clause (f) omitted by Act 61 of 1981, s. 61 and the Second Schedule (w.e.f. 12-7-1982).
11. Ins. by Act 24 of 1978, s. 3 (w.e.f. 21-7-1978).
12. Clauses (f) to (k) omitted by Act 11 of 1947, s. 2 (w.e.f. 1-4-1947) which was earlier inserted by the M.O. 1937.
13. Ins. by Act 52 of 1963, s. 44 and the Second Schedule (w.e.f. 1-2-1964). Earlier clause (g) was inserted by Act 32 of 1951,

s. 4 (w.e.f. 1-11-1951) which was later omitted by Act 62 of 1956, s. 2 and the Schedule (w.e.f. 1-11-1956).

14. Ins. by Act 61 of 1981, s. 61 and the Second Schedule (w.e.f. 12-7-1982).
15. Subs. by Act 62 of 1948, s. 7 and the Schedule, for “SHARE CAPITAL” (w.e.f. 1-1-1949).
16. Subs. by the M.O. 1937, for “G.G. in C.”.


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1[4. Capital of the Bank.—The capital of the Bank shall be five crores of rupees.]

**5.** [Increase and reduction of share capital.]—Omitted by the Reserve Bank (Transfer to Public

_Ownership)Act,1948 (62 of1948), s. 7 and the Schedule (w.e.f. 1-1-1949)._

**6. Offices, branches and agencies.—The Bank shall, as soon as may be, establish offices in**

Bombay, Calcutta, [2][Delhi and Madras] [3]*** and may establish branches or agencies in any other place in
India [4]*** or, with the previous sanction of the [5][Central Government] elsewhere.

6[7. Management.—(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.

7[(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 his behalf, 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.]]

**8. 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 [9][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) [10][ten] Directors to be nominated by the Central Government; and


(d) one Government official 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 [5][Central Government]:

11[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:]

12[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 subsection (1) may attend any

meeting of the Central Board and take part in its deliberations but shall not be entitled to vote:

1. Subs. by Act 62 of 1948, s. 7 and the Schedule, for section 4 (w.e.f. 1-1-1949).
2. Subs. by Act 11 of 1947, s. 5, for “Delhi, Madras and Rangoon” (w.e.f. 1-4-1947).
3. The words “and a branch in London” omitted by Act 24 of 1955, s. 3 (w.e.f. 8-5-1955).
4. The words “or Burma” omitted by Act 11 of 1947, s. 5 (w.e.f. 1-4-1947) which was earlier inserted by the M.O. 1937.
5. Subs. by the M.O. 1937, for “G.G. in C.”.
6. Subs. by Act 62 of 1948, s. 7 and the Schedule, for section 7 (w.e.f. 1-1-1949).
7. Subs. by Act 32 of 1951, s. 5, for sub-section (3) (w.r.e.f. 1-1-1949).
8. Subs. by Act 62 of 1948, s. 7 and the Schedule, for sub-section (1) (w.e.f. 1-1-1949).
9. Subs. by Act 18 of 1964, s. 38 and the Second Schedule, for “three” (w.e.f. 1-7-1964).
10. Subs. by s. 38 and the Second Schedule, ibid., for “six” (w.e.f. 1-7-1964).
11. Added by Act 35 of 1962, s. 2 (w.e.f. 15-9-1962).
12. Ins. by Act 61 of 1981, s. 61 and the Second Schedule (w.e.f. 12-7-1982).


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1[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 [2][Central Government] may fix when appointing them, and shall be eligible for re-appointment.

3[A Director nominated under clause (c) of sub-section (1) shall 4*** hold office for a period of four

years [5][and [6][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 [2][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.


7[8* - - - 

(7) A retiring Director shall be eligible for re-nomination.]

9[9. Local Boards, their constitution and functions.—(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 interests
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.

10[(3) Every member of a Local Board shall hold office for a term of four years and 11[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.]

**10. Disqualifications of Directors and members of Local Boards.—(1) No person may be a**

Director or a member of a Local Board who—

(a) isa salaried Government official [12]*** [13]***, or

(b) is, or at any time has been, adjudicated an insolvent, or has suspended payment or has

compounded with his creditors, or

(c) is fund lunatic or becomes of unsound mind, or

(d) is an officer or employee of any bank, or

1. Subs. by Act 54 of 1953, s. 2, for the proviso (w.e.f. 30-12-1953).
2. Subs. by the M.O. 1937, for “G.G. in C.”.
3. Subs. by Act 62 of 1948, s. 7 and the Schedule, for second paragraph (w.e.f. 1-1-1949).
4. The words, brackets and figure “subject to the provisions of sub-section (6)” omitted by Act 18 of 1964, s. 38 and the Second

Schedule (w.e.f. 1-7-1964).

5. Ins. by Act 51 of 1974, s. 4 (w.e.f. 13-12-1974).
6. Subs. by Act 4 of 2013, s. 17 and the Schedule, for “thereafter until his successor shall have been nominated”

(w.e.f. 18-1-2013).

7. Added by Act 62 of 1948, s. 7 and the Schedule (w.e.f. 1-1-1949).
8. Sub-section (6) omitted by Act 18 of 1964, s. 38 and the Second Schedule (w.e.f. 1-7-1964).
9. Subs. by Act 62 of 1948, s. 7 and the Schedule, for section 9 (w.e.f. 1-1-1949).
10. Subs. by Act 51 of 1974, s. 5, for sub-section (3) (w.e.f. 13-12-1974).
11. Subs. by Act 4 of 2013, s. 17 and the Schedule, for “thereafter until his successor shall have been appointed and shall be

eligible for reappointment” (w.e.f. 18-1-2013).

12. The words “or a salaried official of a State in India” omitted by the A.O. 1950.
13. The words “or Burma” omitted by Act 11 of 1947, s. 8 (w.e.f. 1-4-1947). Earlier inserted by the M.O. 1937.


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1
[(e) is a Director of banking company within the meaning of clause (c) of section 5 of

the [2][Banking 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.

**11. Removal from and vacation of office.—(1) The [3][Central Government] may remove from office**

the Governor, or a Deputy Governor or [4][any other Director or any member of a Local Board]:


5* - - - 

6[(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 [3][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-sections 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.

(5) The [7]*** nomination [8]*** as Director or member of a Local Board of any person who is a

member of [9][Parliament or the Legislature [10][of any State]] shall be void, unless within two months of the
date of his [7]*** nomination [8]*** he ceases to be such member, and if any Director or member of a Local
Board is elected or nominated as a member of [11][Parliament or any such Legislature], he shall cease to be
a Director or member of the Local Board as from the date of such election or nomination, as the case may
be.

(6) A Director may resign his office to the [3][Central Government], and a member of a Local Board

may resign his office to the Central Board, and on the acceptance of the resignation the office shall
become vacant.

**12. Casual vacancies and absences.—(1) If the Governor or a Deputy Governor by infirmity or**

otherwise is rendered incapable of executing his duties or is absent on leave or otherwise in circumstances
not involving the vacation of his appointment, the [3][Central Government] may, after consideration of the
recommendations made by the Central Board in this behalf, appoint another person to officiate for him,
and such person may, notwithstanding anything contained in clause (d) or sub-section (1) of section10, be
an officer of the Bank.


12* - - - 

1. Subs. by Act 23 of 1965, s. 3, for clause (e) (w.e.f. 1-3-1966).
2. Subs. by Act 51 of 1974, s. 3, for “Banking Companies Act, 1949” (w.e.f. 13-12-1974).
3. Subs. by the M.O. 1937, for “G.G. in C.”.
4. Subs. by Act 32 of 1951, s. 6, for “any other Director” (w.e.f. 1-11-1951).
5. The proviso omitted by Act 62 of 1948, s. 7 and the Schedule (w.e.f. 1-1-1949).
6. Subs. by s. 7 and the Schedule, ibid., for sub-section (2) (w.e.f. 1-1-1949).
7. The word “appointment” omitted by s. 7 and the Schedule, ibid. (w.e.f. 1-1-1949).
8. The words “or election” omitted by s. 7 and the Schedule, ibid. (w.e.f. 1-1-1949).
9. Subs. by the A.O. 1950, for certain words.
10. Subs. by Act 32 of 1951, s. 6, for “of a Part A State or a Part C State” (w.e.f. 1-11-1951).
11. Subs. by the A.O. 1950, for “any such Legislature or Council”.
12. Sub-section (2) omitted by Act 62 of 1948, s. 7 and the Schedule (w.e.f. 1-1-1949).


-----

(3) Where any casual vacancy in the office of any member of a Local Board occurs [1]*** the Central

Board may nominate thereto any [2]*** person recommended by the [3][other] members of the Local Board.

(4) Where any casual vacancy occurs in the office of a Director other than the vacancies provided for

in sub-section(1), the vacancy shall be filled [4][by the Central Government].

(5) A person nominated [5]***under this section to fill a casual vacancy shall [6]*** hold office for the

unexpired portion of the term of his predecessor.

**13. Meetings of the Central Board.—(1) Meetings of the Central Board shall be conveyed by the**

Governor at least six times in each year and at least once in each quarter.

(2) Any [7][four Directors] may require the Governor to convene a meeting of the Central Board at any

time and the Governor shall forthwith convene a meeting accordingly.

(3) The Governor, or [8][if for any reason, he is unable to attend,] the Deputy Governor authorised by

the Governor under the proviso to sub-section (3) of section 8 to vote for him shall preside at meetings of
the Central Board, and, in the event of an equality of votes, shall have a second or casting vote.

**14.** [General meetings].—Omitted by the Reserve Bank (Transfer to Public Ownership) _Act, 1948_

(62 of 1948), s. 7 and the Schedule (w.e.f. 1-1-1949).

**15.** [First constitution of the Central Board].—Omitted by s. 7 _and the Schedule, ibid._

(w.e.f. 1-1-1949).

**16. [First constitution of local board].—Omitted by s.7 and the Schedule, ibid. (w.e.f. 1-1-1949).**

**17. Business which the Bank may transact.—The Bank shall be authorised to carry on and transact**

the several kinds of business hereinafter specified, namely:—

(1) the accepting of money on deposit without interest from, and the collection of money for, [9]***

the [10][Central Government], [11][[12]*** the [13][State] Government [14]***] [15]*** local authorities, banks
and any other persons:

16[(1A) The accepting of money as deposits, repayable with interest, from banks or any other

person under the Standing Deposit Facility Scheme, as approved by the Central Board, from time to
time, for the purposes of liquidity management;]

(2) (a) the purchase, sale and rediscount of bills of exchange and promissory notes, [17][drawn

on [18][and payable in India]] and arising out of bona fide commercial or trade transaction bearing two
or more good signatures, one of which shall be that of a scheduled bank [19][or a State co-operative
bank] [20][or any financial institution, which is predominantly engaged in the acceptance or discounting

1. The words “otherwise than by the occurrence of a vacancy in the office of a Director elected by the Local Board” omitted by

Act 62 of 1948, s. 7 and the Schedule (w.e.f. 1-1-1949).

2. The word “qualified” omitted by s. 7 and the Schedule, ibid. (w.e.f. 1-1-1949).
3. Subs. by s. 7 and the Schedule, ibid., for “elected” (w.e.f. 1-1-1949).
4. Subs. by s. 7 and the Schedule, ibid., for certain words (w.e.f. 1-1-1949).
5. The words “or elected” omitted by s. 7 and the Schedule, ibid. (w.e.f. 1-1-1949).
6. The words, brackets and figure “subject to the proviso contained in sub-section (4)” omitted by s. 7 and the Schedule, _ibid._

(w.e.f. 1-1-1949).

7. Subs. by Act 18 of 1964, s. 38 and the Second Schedule, for “three Directors” (w.e.f. 1-7-1964).
8. Subs. by Act 24 of 1955, s. 5, for “in his absence” (w.e.f. 8-5-1955).
9. The words “the Secretary of State” omitted by the A.O. 1948.
10. Subs. by the M.O. 1937, for “G.G. in C.”.
11. Subs. by the M.O. 1937, for “L.G.’s”.
12. The words “the Federal Railway Authority” omitted by the A.O. 1948.
13. Subs. by the A.O. 1950, for “Provincial”.
14. The words “the Government of Burma, the Burma Railway Board,” omitted by Act 11 of 1947, s 11 (w.e.f. 1-4-1947).
15. The words and letter “Part B States” omitted by Act 32 of 1951, s. 7 (w.e.f. 1-11-1951).
16. Ins. by Act 13 of 2018, s. 135 (w.e.f. 28-3-2018).
17. Subs. by the M.O. 1937, for “drawn on and payable in India”.
18. Subs. by Act 11 of 1947, s. 11, for “India or Burma and payable in India or Burma” (w.e.f. 1-4-1947).
19. Ins. by Act 32 of 1951, s. 7 (w.e.f. 1-11-1951).
20. Ins. by Act 51 of 1974, s. 6 (w.e.f. 13-12-1974).


-----

of bills of exchange and promissory notes and which is approved by the Bank in this behalf] [1]***
and [2][maturing,—

(i) in the case of bills of exchange and promissory notes arising out of any such transaction

relating to the export of goods from India, within one hundred and eighty days, and

(ii) in any other case, within ninety days,


from the date of such purchase or rediscount exclusive of days of grace;]


(b) the purchase, sale and rediscount of bills of exchange and promissory notes, [3][drawn [4][and

payable in India]] and bearing two or more good signatures, one of which shall be that of a scheduled
bank [5][or a [6][State] co-operative bank] [7][or any financial institution, which is predominantly engaged
in the acceptance or discounting of bills of exchange and promissory notes and which is approved by
the Bank in this behalf] and drawn or issued for the purpose of [8][financing agricultural operations] or
the marketing of crops, and maturing within [9][fifteen months] from the date of such purchase or
rediscount, exclusive of days of grace;


10* - - - 

11[(bb) the purchase, sale and rediscount of bills of exchange and promissory notes drawn and

payable in India and bearing two or more good signatures, one of which shall be that of a State cooperative bank or a State financial corporation [7][or any financial institution, which is predominantly
engaged in the acceptance or discounting of bills of exchange and promissory notes and which is
approved by the Bank in this behalf], and drawn or issued for the purpose of financing the production
or marketing activities of cottage and small-scale industries approved by the Bank and maturing
within twelve months from the date of such purchase or rediscount, exclusive of days of grace,
provided that the payment of the principal and interest of such bills of exchange or promissory notes
is fully guaranteed by the State Government;]

(c) the purchase, sale and rediscount of bills of exchange and promissory notes [3][drawn [12][and

payable in India]] and bearing the signature of a scheduled bank, [13]*** and issued or drawn for the
purpose of holding or trading in securities of [14] [the Central Government [15] [or a [6][State]
Government]] [16]*** and maturing within ninety days from the date of such purchase or rediscount,
exclusive of days of grace;


(3) (a) the purchase from and sale to scheduled banks [17]*** of [18][foreign exchange] [19]***;


1. The words “or a Burma scheduled bank” omitted by Act 11 of 1947, s. 11 (w.e.f. 1-4-1947), which were inserted by M.O.

1937.

2. Subs. by Act 35 of 1962, s. 3, for “maturing within ninety days from the date of such purchase or re-discount, exclusive of

days of grace” (w.e.f. 15-9-1962).

3. Subs. by M.O. 1937, for “drawn and payable in India”.
4. Subs. by Act 11 of 1947, s. 11, for “either in India or in Burma and payable either in India or in Burma” (w.e.f. 1-4-1947).
5. Subs. by s. 11, _ibid., for “a Burma scheduled bank, a provincial co-operative bank, or a Burma co-operative bank”_

(w.e.f. 1-4-1947).

6. Subs. by the A.O. 1950, for “Provincial”.
7. Ins. by Act 51 of 1974, s. 6 (w.e.f. 13-12-1974).
8. Subs. by s. 6, ibid.,for “financing seasonal agricultural operations” (w.e.f. 13-12-1974).
9. Subs. by Act 32 of 1951, s. 7, for “nine months” (w.e.f. 1-11-1951).
10. The Explanation omitted by Act 23 of 1965, s. 4 (w.e.f. 1-3-1966). Earlier added by Act 54 of 1953, s. 3 (w.e.f. 30-12-1953).
11. Ins. by Act 54 of 1953, s. 3 (w.e.f. 30-12-1953).
12. Subs. by Act 11 of 1947, s. 11, for “either in India or Burma and payable either in India or in Burma” (w.e.f. 1-4-1947).
13. The words “or a Burma scheduled bank” omitted by s. 11, ibid. (w.e.f. 1-4-1947).
14. Subs. by the M.O. 1937, for “the Government of India or a L.G.”.
15. Subs. by Act 11 of 1947, s. 11, for “or a Provincial Government” (w.e.f. 1-4-1947).
16. The words “or such securities of Part B States as may be specified in this behalf by the Central Government on the

recommendation of the Central Board” omitted by Act 32 of 1951, s. 7 (w.e.f. 1-11-1951).

17. The words “and Burma scheduled banks” omitted by Act 11 of 1947, s. 11 (w.e.f. 1-4-1947) which was earlier inserted by

M.O. 1937.

18. Subs. by Act 62 of 1948, s. 7 and the Schedule, for “sterling” (w.e.f. 1-1-1949).
19. The words “in amounts of not less than the equivalent of one lakh of rupees” omitted by Act 24 of 1978, s. 4

(w.e.f. 21-7-1978).


-----

1[(b) the purchase sale and rediscount of bills of exchange (including treasury bills) drawn in or

on any place in any country outside India which is a member of the International Monetary Fund and
maturing,—

(i) in the case of bills of exchange arising out of any _bona fide transaction relating to the_

export of goods from India, within one hundred and eighty days, and

(ii) in any other case, within ninety days,


from the date of such purchase or rediscount:


Provided that no such purchase, sale or rediscount shall be made in India except with a

scheduled bank or a State co-operative bank;]


2* - - - 

3[(3A) the making to any scheduled bank or State co-operative bank, or loans and advances,

against promissory notes or such bank, repayable on demand or on the expiry of fixed periods not
exceeding one hundred and eighty days:


Provided that the borrowing bank furnishes a declaration in writing, to the effect that—


(i) it holds bills of exchange arising out of any transaction relating to the export of goods

from India of a value not less than the amount of such loans or advances,—

(a) drawn in India and no any place in any country outside India which is a member of

the International Monetary Fund or in any other country notified in this behalf by the Bank in
the Gazette of India, and

4[(b) maturing not later than one hundred and eighty days from the date of the loan or

advance, and it will, so long as any part of such loans and advances remains unpaid, continue
to hold such bills of exchange of a value not less than the amount of such loans or advances
outstanding for the time being; or]

5[(ii) it has granted a pre-shipment loan or advance to an exporter or any other person in India

in order to enable him to export goods from India, the amount of the loan or advance drawn and
outstanding at any time being not less than the outstanding amount of the loan or advance
obtained by the borrowing bank from the Bank.]]

6[(3B) the making to any scheduled bank or State co-operative bank or loans and advances

repayable on demand or on the expiry of fixed periods not exceeding one hundred and eighty days
against promissory notes of such bank:

Provided that the borrowing bank furnishes a declaration in writing to the effect that it has made

loans and advances for _bona fide commercial or trade transactions or for financing agricultural_
operations or the marketing of crops or for other agricultural purposes as set out in the declaration and
the said declaration includes such other particulars as may be required by the Bank;]

(4) the making to [7] *** local authorities, scheduled banks [8] [, [9] *** [10] [State] co-operative

banks [11][and State Financial Corporations [12]***]] or loans and advances, repayable on demand or on
the expiry of fixed periods not exceeding ninety days, against the security of—

1. Subs. by Act 35 of 1962, s. 3, for sub-clause (b) (w.e.f. 15-9-1962).
2. Sub-clause (c) omitted by Act 62 of 1948, s. 7 and the Schedule (w.e.f. 1-1-1949).
3. Ins. by Act 35 of 1962, s. 3 (w.e.f. 15-9-1962).
4. Subs. by Act 58 of 1968, s. 24, for sub-clause (b) (w.e.f. 1-2-1969).
5. Subs. by s. 24, ibid., for clause (ii) (w.e.f. 1-2-1969).
6. Ins. by Act 51 of 1974, s. 6 (w.e.f. 13-12-1974).
7. The words and letter “Part B States” omitted by Act 32 of 1951, s. 7 (w.e.f. 1-11-1951).
8. Subs. by the M.O. 1937, for “and Provincial co-operative banks”.
9. The words “Burma scheduled banks” omitted by Act 11 of 1947, s. 11 (w.e.f 1-4-1947).
10. Subs. by the A.O. 1950, for “Provincial”.
11. Subs. by Act 19 of 1957, s. 2, for certain words (w.e.f. 8-6-1957).
12. The words and figures “established under the State Financial Corporations Act, 1951” omitted by Act 24 of 1978,

s. 4 (w.e.f. 21-7-1978).


-----

(a) stocks, funds and securities (other than immovable property) in which a trustee is

authorised to invest trust money by any Act of Parliament [1][of the United Kingdom] or by any
law for time being in force in [2][India] [3]***;

(b) gold or silver or documents of title to the same;

(c) such bills of exchange and promissory notes as are eligible for purchase or rediscount by

the Bank [4][or as are fully guaranteed as to the repayment of the principal and payment of interest
by a State Government];

(d) promissory notes of any scheduled bank [5][[6][or [7][State]] co-operative bank], supported by

documents of title to goods [8][such documents having been transferred], assigned, or pledged to
any such bank as security for [9][a loan or advance made] for _bona fide commercial or trade_
transactions, or for the purpose of [10][financing agricultural operations] or the marketing of crops:

11[Provided that loans and advances made against the security of bills of exchange and

promissory notes arising out of any transaction relating to the export of goods from India shall be
repayable on demand or on the expiry of fixed periods not exceeding one hundred and eighty
days;]

12[(4A) the making to any State Financial Corporation 13***, of loans and advances repayable on

the expiry of fixed periods not exceeding eighteen months from the date of such loan or advance,
against securities of the Central Government or of any State Government, of any maturity, or against
bonds and debentures issued by that Corporation and guaranteed by the State Government concerned
and maturing within a period not exceeding eighteen months from the date of such loan or advance:

14
[Provided that the previous approval of the State Government shall be obtained for the

borrowing by the State Financial Corporation and the amount of loans and advances granted to that
Corporation under this clause shall not, at any time, exceed in the aggregate [15][twice the paid-up share
capital] thereof;]]

16 [ 17 [(4AA)] the making of annual contributions to the National Rural Credit (Long Term

Operations) Fund and the National Rural Credit (Stabilisation) Fund established under sections
42 and 43, respectively, of the National Bank for Agriculture and Rural Development Act, 1981 (61
of 1981);]

18[(4B) the making to the Industrial Finance Corporation of India 19*** of loans and advances,—

(a) repayable on demand or on the expiry of fixed periods not exceeding ninety days from the

date of such loan or advance, against securities of the Central Government or of any State
Government; or

1. Ins. by the A.O. 1950.
2. Subs. by Act 32 of 1951, s. 2 for “the States” (w.e.f. 1-11-1951).
3. The words “or Burma” omitted by Act 11 of 1947, s. 11 (w.e.f. 1-4-1947) which was inserted by the M.O. 1937.
4. Ins. by Act 24 of 1955, s. 6 (w.e.f. 8-5-1955).
5. Subs. by the M.O. 1937, for “or a Provincial co-operative bank”.
6. Subs. by Act 11 of 1947, s. 11, for “Burma scheduled bank, provincial co-operative bank or Burma” (w.e.f. 1-4-1947).
7. Subs. by the A.O. 1950, for “Provincial”.
8. Subs. by Act 32 of 1951, s. 7, for “which have been transferred” (w.e.f. 1-11-1951).
9. Subs. by Act 24 of 1955, s. 6, for “a cash credit or overdraft granted” (w.e.f. 8-5-1955).
10. Subs. by Act 51 of 1974, s. 6, for “financing seasonal agricultural operations” (w.e.f. 13-12-1974).
11. Added by Act 35 of 1962, s. 3 (w.e.f. 15-9-1962).
12. Ins. by Act 14 of 1960, s. 2 (w.e.f. 30-4-1960).
13. The words and figures “established under the State Financial Corporations Act, 1951” omitted by Act 24 of 1978, s. 4 (w.e.f.

21-7-1978).

14. Subs. by Act 51 of 1974, s. 6, for the proviso (w.e.f. 13-12-1974).
15. Subs. by Act 81 of 1985, s. 2, for “ninety per cent. of the paid-up share capital” (w.e.f. 1-5-1986).
16. Subs. by Act 61 of 1981, s. 61 and the Second Schedule, for clause (4AA) (w.e.f. 12-7-1982).
17. Clause (4A) renumbered and re-lettered as clause (4AA) thereof by Act 14 of 1960, s. 2 (w.e.f. 30-4-1960). Earlier it was

inserted by Act 54 of 1953, s. 3 (w.e.f. 30-12-1953).

18. Ins. by Act 54 of 1953, s. 3 (w.e.f. 30-12-1953).
19. The words and figures “established under the Industrial Finance Corporation Act, 1948” omitted by Act 24 of 1978, s. 4

(w.e.f. 21-7-1978).


-----

(b) repayable on the expiry of fixed periods not exceeding eighteen months from the date of

such loan or advance, against securities of the Central Government of any maturity or against
bonds and debentures issued by the Corporation and guaranteed by the Central Government and
maturity within a period not exceeding eighteen months from the date of such loan or advance;


1* - - - *]


2[(4BB) the making to any financial institution notified by the Central Government in this behalf,

of loans and advances,—

(a) repayable on demand or on the expiry of fixed periods not exceeding ninety days from the

date of such loan or advance, against the securities of the Central Government or of any State
Government, or

(b) repayable on the expiry of fixed periods not exceeding eighteen months from the date of

such loan or advance, against securities of the Central Government or of any State Government,
of any maturity, or against bonds and debentures issued by that financial institution and
guaranteed by the Central Government or any State Government, and maturing within a period
not exceeding eighteen months from the date of such loan or advance:


Provided that the amount of loans and advances granted to a financial institution under sub
clause (b) shall not, at any time, exceed in the aggregate sixty per cent.of the paid-up share capital
thereof;]


3[(4BBB) the making to the Unit Trust of loans and advances—


(i) repayable on demand or on the expiry of a fixed period not exceeding ninety days from the

date of such loan or advance against the security of stocks, funds and securities (other than
immovable property) in which a trustee is authorised to invest trust money by any law for the
time being in force in India; [4]***

(ii) repayable on demand or within a period of eighteen months from the date of such loan or

advance against the security of the bonds of the Unit Trust issued with the approval of and
guaranteed by the Central Government;]

5[(iii) for the purpose of any scheme other than the first unit scheme under the Unit Trust of

India Act, 1963 (52 of 1963) on such terms and conditions and against the security of such other
property of the Unit Trust as may be specified in this behalf by the Bank;]

6[(4C) the making to a Warehousing Corporation established under the Agricultural Produce

(Development and Warehousing) Corporations Act, 1956 (28 of 1956) of loans and advances,—

(a) repayable on demand or on the expiry of fixed periods not exceeding ninety days, from

the date of such loan or advance, against securities of the Central Government or of any State
Government, or

(b) repayable on the expiry of fixed periods not exceeding eighteen months from the date of

such loan or advance, against securities of the Central Government or of any State Government,
of any maturity, or against bonds and debentures issued by the corporation to which the loan or
advance is made, and guaranteed by the Central or a State Government, and maturing within a
period not exceeding eighteen months from the date of such loan or advance:

Provided that the amount of loans and advances granted under clause (b) shall not at any time

exceed, in the aggregate, three crores of rupees in the case of the Central Warehousing
Corporation and fifty lakhs of rupees in the case of a State Warehousing Corporation;]

1. The proviso omitted by Act 66 of 1988, s. 5 (w.e.f. 30-12-1988).
2. Subs. by Act 14 of 1960, s. 2, for clause (4BB) (w.e.f. 30-4-1960). Earlier inserted by Act 19 of 1957, s. 2 (w.e.f. 8-6-1957).
3. Ins. by Act 52 of 1963, s. 44 and the Second Schedule (w.e.f. 1-2-1964).
4. The word “or” omitted by Act 17 of 1966, s. 11 (w.e.f. 10-6-1966).
5. Ins. by s. 11, ibid. (w.e.f. 10-6-1966).
6. Ins. by Act 28 of 1956, s. 55 (w.e.f. 1-8-1956).


-----

1[(4D) the making to the Deposit Insurance Corporation of loans and advances; and generally

assisting the Corporation in such manner and on such terms as may be determined by the Central
Board;]

2[(4DD) the making to the National Housing Bank of loans and advances arid generally assisting

the National Housing Bank in such manner and on such terms as may be determined by the Central
Board;]

3[(4E) the making to the National Bank of loans and advances repayable on demand or on the

expiry of fixed period not exceeding eighteen months from the date of making of the loan or advance,
either—

(i) against the security of stocks, funds and securities (other than immovable property) in

which a trustee is authorised to invest trust money by any law for the time being in force in India;
or

(ii) on such other terms and conditions as the Bank may specify;]


4[(4F) contributing to the initial Capital of the Unit Trust;]


5 [(4G) the making of loans and advances to, and the purchasing of bonds and debentures

of, [6]*** [7][the Exim Bank] [8][or the Reconstruction Bank] [9][or the Small Industries Bank [10][or the
National Bank for Financing Infrastructure and Development or other development financial
institution]] out of the National Industrial Credit (Long Term Operations) Fund established under
section 46C;]

2[(4GG) the making of loans and advances to, and the purchasing of bonds and debentures of, the

National Housing Bank out of the National Housing Credit (Long Term Operations) Fund established
under section 46D;]

(4H) the making to [6]*** [9][or the Small Industries Bank] of loans and advances—

(a) repayable on demand or on the expiry of fixed periods not exceeding ninety days from the

date of such loan or advance against the security of stocks, funds and securities (other than
immovable property) in which a trustee is authorised to invest trust money by any law for the
time being in force in India; or

(b) against the security of bills of exchange or promissory notes, arising out of _bona fide_

commercial or trade transactions bearing two or more good signatures and maturing within five
years from the date of such loan or advance;]

11[(4-I) the making to scheduled banks, 12*** 7[the Exim Bank] 13[the Reconstruction Bank or the

Small Industries Bank] the Industrial Finance Corporation [10][the National Bank for Financing
Infrastructure and Development or other development financial institution] and any other financial
institution as may, on the recommendation of the Bank, be approved in this behalf by the Central
Government of loans and advances repayable on demand or otherwise and against such security and
on such other terms and conditions as may be approved in this behalf by the Central Board for the
purpose of enabling such banks, or financial institution, as the case may be, to purchase foreign
exchange from the Bank for the purpose of financing the import of capital goods or for such other
purposes as may be approved by the Central Government;]

7[(4J) the making to the Exim Bank of loans and advances—

1. Ins. by Act 47 of 1961, s. 51 and the Second Schedule (w.e.f. 1-1-1962).
2. Ins. by Act 53 of 1987, s. 56 and the Second Schedule (w.e.f. 9-7-1988).
3. Subs. by Act 61 of 1981, s. 61 and the Second Schedule, for clause (4E) (w.e.f. 12-7-1982).
4. Ins. by Ac 52 of 1963, s. 44 and the Second Schedule (w.e.f. 1-2-1964).
5. Ins. by Act 18 of 1964, s. 38 and the Second Schedule (w.e.f. 1-7-1964).
6. The words “the Development Bank or” omitted by Act 53 of 2003, s. 12 and the Schedule (w.e.f. 2-7-2004).
7. Ins. by Act 28 of 1981, s. 40 and the Second Schedule (w.e.f. 1-1-1982).
8. Ins. by Act 62 of 1984, s. 71 and the Third Schedule (w.e.f. 20-3-1985).
9. Ins. by Act 39 of 1989, s. 53 and the Second Schedule (w.e.f. 7-3-1990).
10. Ins. by Act 17 of 2021, s. 47 and the second Schedule (w.e.f. 19-4-2021).
11. Ins. by Act 24 of 1978, s. 4 (w.e.f. 21-7-1978).
12. The words “the Development Bank” omitted by Act 53 of 2003, s. 12 and the Schedule (w.e.f. 2-7-2004).
13. Subs. by Act 39 of 1989, s. 53 and the Second Schedule, for “or the Reconstruction Bank” (w.e.f. 7-3-1990).


-----

(a) repayable on demand or on the expiry of a fixed period not exceeding ninety days, from the date of

such loan or advance against the security of stocks, funds and securities (other than immovable property) in
which a trustee is authorised to invest trust money by any law for the time being in force in India; or

(b) against the security of bills of exchange or promissory notes, arising out of bona fide commercial or

trade transactions bearing two or more good signatures and maturing within five years from the date of
such loan or advance;]

1[(4K) the making to the Reconstruction Bank of loans and advances—

(a) repayable on demand or on the expiry of a fixed period not exceeding ninety days, from the date of

such loan or advance against the security of stocks, funds and securities (other than immovable property) in
which a trustee is authorised to invest trust money by any law for the time being in force in India; or

(b) against the security of bills of exchange or promissory notes, arising out of _bona fide_

commercial or trade transactions bearing two or more goods signatures and maturing within five
years from the date of such loan or advance;]

2 [(4L) the making to the National Bank for Financing Infrastructure and Development or other

development financial institution of loans and advances—


(a) repayable on demand or on the expiry of a fixed period not exceeding ninety days, from the

date of such loan or advance against the security of stocks, funds and securities (other than immovable
property) in which a trustee is authorised to invest trust money by any law for the time being in force
in India; or

(b) against the security of bills of exchange or promissory notes, arising out of _bona fide_

commercial or trade transactions bearing two or more good signatures and maturing within five years
from the date of such loan or advance;]

(5) the making to the [3][Central Government] [4][[5]*** [6][and [7][State] Governments]] of advances

repayable in each case not later than three months from the date of the making of the advance;

8[(6) the issue of demand drafts, telegraphic transfers and other kinds of remittances made

payable at its own offices or agencies, the purchase of telegraphic transfers, and the making, issue and
circulation of bank post bills;]

9[(6A) dealing in derivatives, and, with the approval of the Central Board, in any other financial

instrument.

_Explanation.—For the purposes of this clause, “derivative” means an instrument, to be settled at a_

future date, whose value is derived from change in one or a combination of more than one of the
following underlying, namely:—

(a) interest rate,
(b) price of securities of the Central Government or a State Government or of such securities

of a local authority as may be specified in this behalf by the Central Government,

(c) price of foreign securities,
(d) foreign exchange rate,
(e) index of rates or prices,
(f) credit rating or credit index,
(g) price of gold or silver coins, or gold or silver bullion, or
(h) any other variable of similar nature;]


10* - - - 

1. Ins. by Act 62 of 1984, s. 71 and the Third Schedule (w.e.f. 20-3-1985).
2. Ins. by Act 17 of 2021, s. 47 and the Second Schedule (w.e.f. 19-4-2021).
3. Subs. by the M.O. 1937, for “G.G. in C.”.
4. Subs. by ibid., for certain words.
5. The words “the Federal Railway Authority” omitted by the A.O. 1948.
6. Subs. by Act 11 of 1947, s. 11, for “Provincial Governments, the Government of Burma and the Burma Railway

Board” (w.e.f. 1-4-1947).

7. Subs. by the A.O. 1950, for “Provincial”.
8. Subs. by Act 32 of 1951, s. 7, for clause (6) (w.e.f. 1-11-1951).
9. Ins. by Act 26 of 2006, s. 2 (w.e.f. 9-1-2007).
10. Clause (7) repealed by Act 2 of 1948, s. 2 and the Schedule (w.e.f. 5-1-1948).


-----

(8) the purchase and sale of securities [1][of the Central [2][Government or a [3][State] Government]]

of any maturity or of such securities of a local authority [4]*** as may be specified in this behalf by
the [5][Central Government] on the recommendation of the Central Board:

Provided that securities fully guaranteed as to principal and interest by [6] [any such

Government [7][or authority]] shall be deemed for the purposes of this clause to be securities of such
Government [7][or authority];


8* - - - 

9[(8A) the purchase and sale of shares in, or the capital of 10[the 11[National Bank],] 12[the Deposit

Insurance Corporation], [13]***, the State Bank [14][or any other bank [15][or financial institution] notified
by the Central Government in this behalf];]

16[(8AA) the promoting, establishing, supporting or aiding in the promotion, establishment and

support of any financial institution, whether as its subsidiary or otherwise;]

17[(8B) the keeping of deposits with the State Bank for such specific purposes as may be approved

by the Central Government in this behalf;]

(9) the custody of monies, securities and other articles of value, and the collection of the

proceeds, whether principal, interest or dividends, of any such securities;

(10) the sale realisation of all property, whether movable or immovable, which may in any way

come into the possession of the Bank in satisfaction, or part satisfaction, of any of its claims;

(11) the acting as agent for [18]*** the [5][Central Government] [19][or any [3][State] Government [20]***

or any local authority [21]***] [22][or the Industrial Finance Corporation of India [23]***] [24][or any other
body corporate which is established or constituted by or under any other law] [25][or the Government of
any such country outside India or [26][any such person or authority] as may be approved in this behalf
by the Central Government] in the transaction of any of the following kinds of business, namely:—

(a) the purchase and sale of gold or silver [27][or foreign exchange];

(b) the purchase, sale, transfer and custody of bills of exchange, securities or shares in any

company;

1. Subs. by the M.O. 1937, for “of the G. of I or of a L.G.”.
2. Subs. by Act 11 of 1947, s. 11, for “Government, a Provincial Government or the Government of Burma” (w.e.f. 1-4-197).
3. Subs. by the A.O. 1950, for “Provincial”.
4. The words and letter “or such Part B States” omitted by Act 32 of 1951, s. 7 (w.e.f. 1-11-1951).
5. Subs. by the M.O. 1937, for “G.G. in C.”.
6. Subs., ibid., for “the G. of I., a L.G., a local authority or State in India”.
7. Subs. by Act 32 of 1951, s. 7, for “authority or State” (w.e.f. 1-11-1951).
8. The second proviso omitted by s. 7, ibid. (w.e.f. 1-11-1951).
9. Ins. by Act 23 of 1955, s. 52 and the Third Schedule (w.e.f. 1-7-1955).
10. Ins. by Act 10 of 1963, s. 47 and the Second Schedule (w.e.f. 1-5-1963).
11. Subs. by Act 61 of 1981, s. 61 and the Second Schedule, for “Agricultural Refinance and Development Corporation”

(w.e.f. 12-7-1982).

12. Ins. by Act 47 of 1961, s. 51 and the Second Schedule (w.e.f. 1-1-1962).
13. The words “the Development Bank” omitted by Act 53 of 2003, s. 12 and the Schedule (w.e.f. 2-7-2004).
14. Subs. by Act 79 of 1956, s. 43 and the Second Schedule, for “or any of its subsidiary banks” (w.e.f. 22-10-1956).
15. Ins. by Act 19 of 1957, s. 2 (w.e.f. 8-6-1957).
16. Ins. by Act 53 of 1987, s. 56 and the Second Schedule (w.e.f. 9-7-1988).
17. Ins. by Act 38 of 1959, s. 64 and the Third Schedule (w.e.f. 10-9-1959).
18. The words “the Secretary of State” omitted by the A.O. 1948.
19. Subs., ibid., for certain words.
20. The words “or the Government of Burma” omitted by Act 11 of 1947, s. 11 (w.e.f. 1-4-1947).
21. The words and letter “or any Part B State” omitted by Act 32 of 1951, s. 7 (w.e.f. 1-11-1951).
22. Ins. by Act 44 of 1949, s. 2.
23. The words “established under the Industrial Finance Corporation Act, 1948 (15 of 1948)” omitted by Act 24 of 1978,

s. 4 (w.e.f. 21-7-1978).

24. Ins. by Act 51 of 1974, s. 6 (w.e.f. 13-12-1974).
25. Ins. by Act 32 of 1951, s. 7 (w.e.f. 1-11-1951).
26. Subs. by Act 51 of 1974, s. 6, for “any such person” (w.e.f. 13-12-1974).
27. Added by Act 23 of 1947, s. 3 (w.e.f. 18-4-1947).


-----

(c) the collection of the proceeds, whether principal, interest or dividends, of any securities or

shares;

(d) the remittance of such proceeds, at the risk of the principal, by bills of exchange payable

either in India or elsewhere;

(e) the management of public debt;

1[(f) 2*** the issue and management of 3*** bonds and debentures;]


4[(11A) the acting as agent for the Central Government,—


5[(a) in guaranteeing the due performance by any small-scale industrial concern, approved by

the Central Government, of its obligations to any bank or other financial institution in respect of
loans and advances made, or other credit facilities provided, to it by such bank or other financial
institution and the making as such agent of payments in connection with such guarantee, and]

(b) in administering any scheme for subsidising the rate of interest or other charges in relation

to any loans or advances made, or other credit facilities provided, by banks or other financial
institutions for the purpose of financing or facilitating any export from India and the making as
such agent of payments on behalf of the Central Government;]

6[(12) the purchase and sale of gold or silver coins and gold and silver bullion and foreign

exchange and the opening of a gold account with the principal currency authority of any foreign
country or the Bank for International Settlements or any international or regional bank or financial
institution formed by such principal currency authority or authorities or by the Government of any
foreign country;]

7[(12A) the purchase and sale of securities issued by the Government of any country outside India

or by any institution or body corporate established outside India and expressed to be payable in a
foreign currency or any international or composite currency unit, being in the case of purchase by the
Bank securities maturing within a period of ten years from the date of purchase:

Provided that in the case of securities of an institution or body corporate, the repayment of

principal and payment of interest in respect of such securities shall be guaranteed by the Government
of the country concerned;]

8[(12AA) lending or borrowing of securities of the Central Government or a State Government or

of such securities of a local authority as may be specified in this behalf by the Central Government or
foreign securities;

(12AB) dealing in repo or reverse repo:

Provided that lending or borrowing of funds by way of repo or reverse repo shall not be subject to

any limitation contained in this section.

_Explanation.—For the purposes of this clause,—_

(a) “repo” means an instrument for borrowing funds by selling securities of the Central

Government or a State Government or of such securities of a local authority as may be specified
in this behalf by the Central Government or foreign securities, with an agreement to repurchase
the said securities on a mutually agreed future date at an agreed price which includes interest for
the funds borrowed;

1. Ins. by Act 44 of 1949, s. 2.
2. The words “in respect of the aforesaid Corporation” omitted by Act 51 of 1974, s. 6 (w.e.f. 13-12-1974).
3. The word “its” omitted by s. 6, ibid. (w.e.f. 13-12-1974).
4. Subs. by Act 58 of 1968, s. 24, for clause (11A) (w.e.f. 1-2-1969). Earlier it was inserted by Act 14 of 1960, s. 2

(w.e.f. 30-4-1960).

5. Restored by Act 81 of 1985, s. 12 (w.e.f. 1-5-1986). Earlier sub-clause (a) omitted by Act 21 of 1978, s. 9 (date to be notified).
6. Subs. by Act 24 of 1978, s. 4, for clause (12) (w.e.f. 21-7-1978).
7. Subs. by s. 4, ibid., for clause (12A) (w.e.f. 21-7-1978).
8. Ins. by Act 26 of 2006, s. 2 (w.e.f. 9-1-2007).


-----

(b) “reverse repo” means an instrument for lending funds by purchasing securities of the

Central Government or a State Government or of such securities of a local authority as may be
specified in this behalf by the Central Government or foreign securities, with an agreement to
resell the said securities on a mutually agreed future date at an agreed price which includes
interest for the funds lent;]

1[(12B) the making of loans and advances in foreign currencies to scheduled banks, 2*** 3[, the

Exim Bank], [4][or [5][the Reconstruction Bank or the Small Industries Bank]] the Industrial Finance
Corporation [6][the National Bank for Financing Infrastructure and Development or other development
financial institution,] any State Financial Corporation and any other financial institution as may, on
the recommendation of the Bank, be approved by the Central Government and on such terms and
conditions as may be specified by the Central Board in this behalf, against promissory notes of such
bank or financial institution, as the case may be:

Provided that the borrowing bank or financial institution, as the case may be, furnishes a

declaration in writing to the effect that—

(a) it has made loans and advances in foreign currencies for financing international trade or

for the import of capital goods or for such other purposes as may be approved by the Central
Government; and

(b) that the amount of loans or advances so made and outstanding at any time will not be less

than the outstanding amount of the loans or advances obtained by it from the Bank;]


7[(13) the opening of an account with an office outside India of any bank, including a bank

incorporated in India or the making of an agency agreement with, and the acting as an agent or
correspondent of, any bank incorporated outside India, or the principal currency authority of any
country under the law for the time being in force in that country or any international or regional bank
or financial institution formed by such principal currency authorities or foreign governments, and the
investing of the funds of the Bank in the shares and securities of any such international or regional
bank or financial institution or of any other foreign institution as may be approved by the Central
Board in this behalf;]

8[(13A) participation in any arrangement for the clearing and settlement of any amounts due from,

or to, any person or authority on account of the external trade of India with any other country or
group of countries or of any remittances to, or from, that country or group of countries, including the
advancing, or receiving, of any amount in any currency in connection therewith, and, for that purpose,
becoming, with the approval of the Central Government, a member of any international or regional
clearing union of central banks monetary or other authorities, or being associated with any such
clearing arrangements, or becoming a member of any body or association formed by central banks,
monetary or other similar authorities, or being associated with the same in any manner;]

(14) the borrowing of money for a period not exceeding one month for the purposes of the

business of the Bank, and the giving of security for money so borrowed:

Provided that no money shall be borrowed under this clause from any person in India [9]*** other

than a scheduled bank [10]*** or from any person outside India [11]*** other than a bank which is the
principal currency authority of any country under the law for the time being in force in that country:

1. Ins. by Act 24 of 1978, s. 4 (w.e.f. 21-7-1978).
2. The words “the Development Bank” omitted by Act 53 of 2003, s. 12 and the Schedule (w.e.f. 2-7-2004).
3. Ins. by Act 28 of 1981, s. 40 and the Second Schedule (w.e.f. 1-1-1982).
4. Ins. by Act 62 of 1984, s. 71 and the Third Schedule (w.e.f. 20-3-1985).
5. Subs. by Act 39 of 1989, s. 53 and the Second Schedule, for “the Reconstruction Bank” (w.e.f. 7-3-1990).
6. Ins. by Act 17 of 2021, s. 47 and the Second Schedule (w.e.f. 19-4-2021).
7. Subs. by Act 24 of 1978, s. 4, for clause (13) (w.e.f. 21-7-1978) which was inserted by the M.O. 1937.
8. Ins. by Act 44 of 1973, s. 2 (w.r.e.f. 15-9-1973).
9. The words “or Burma” omitted by Act 11 of 1947, s. 11 (w.e.f. 1-4-1947) which were earlier inserted by the M.O. 1937.
9. The words “or a Burma scheduled bank” omitted by s. 11, _ibid. (w.e.f. 1-4-1947) which were earlier inserted by the M.O._

1937.

10. The words “and Burma” omitted by s. 11, ibid. (w.e.f. 1-4-1947).


-----

Provided further that the total amount of such borrowings from persons in India [1]*** shall not at

any time exceed the amount of the [2][capital] of the Bank;


3* - - - 

(15) the making and issue of bank notes subject to the provisions of this Act [4]***; [5]***


6[(15A) the exercise of powers and functions and the performance of duties entrusted to the Bank

under this Act or under any other law for the time being in force;]

7[15B) the providing of facilities for training in banking and for the promotion of research, where,

in the opinion of the Bank, such provision may facilitate the exercise by the Bank of its powers and
functions, or the discharge of its duties;]

(16) generally, the doing of all such matters and things as may be incidental to or consequential

upon the exercise of its powers or the discharge of its duties under this Act [8]***.

**18. Power of direct discount.—[9]***When, in the opinion of the [10][Bank] [11]***, a special occasion**

has arisen making it necessary or expedient that action should be taken [12][under this section] for the
purposes of regulating credit in the interests of Indian [13]*** trade, commerce, industry and agricultural,
the Bank may, notwithstanding any limitation contained in [14]*** section 17,—

15[(1) purchase, sell or discount any bill of exchange or promissory note though such bill or

promissory note is not eligible for purchase or discount by the Bank under that section; or]


16* - - - 

17[(3) make loans or advances to—


(a) a State co-operative bank, or

(b) on the recommendation of a State co-operative bank, to a cooperative society registered

within the area in which the State cooperative bank operates, or

(c) any other person,

repayable on demand or on the expiry of the fixed periods, not exceeding ninety days, on such terms
and conditions as the Bank may consider to be sufficient.]


18*     -     -     -     
19*     -     -     -     
1. The words “and Burma” omitted by Act 11 of 1947, s. 11 (w.e.f. 1-4-1947).
2. Subs. by Act 32 of 1951, s. 7, for “share capital” (w.e.f. 1-11-1951).
3. Clause (14A) omitted by Act 38 of 1959, s. 64 and the Third Schedule (w.e.f. 1-10-1959) which was inserted by Act 79 of

1956, s. 43 and the Second Schedule (w.e.f. 22-10-1956).

4. The words “and the making and issue of Burma notes in accordance with the law of Burma” omitted by Act 11 of 1947, s. 11

(w.e.f. 1-4-1947) which was inserted by the M.O. 1937.

5. The word “and” omitted by Ordinance 47 of 1945, s. 6.
6. Subs. by Act 23 of 1955, s. 52 and the Third Schedule for clause (15A) (w.e.f. 1-7-1955).
7. Ins. by Act 58 of 1968, s. 24 (w.e.f. 1-2-1969).
8. The words “and the law of Burma” omitted by Act 11 of 1947, s. 11 (w.e.f. 1-4-1947) which was inserted by the M.O. 1937.
9. The brackets and figures “(1)” omitted by Act 51 of 1974, s. 7 (w.e.f. 13-12-1974).
10. Subs. by Act 32 of 1951, s. 8, for “Central Board” (w.e.f. 1-11-1951).
11. Certain words omitted by Act 62 of 1948, s. 7 and the Schedule (w.e.f. 1-1-1949).
12. Subs. by Act 51 of 1974, s. 7, for “under this sub-section” (w.e.f. 13-12-1974).
13. The words “or Burman” omitted by Act 11 of 1947, s. 12 (w.e.f. 1-4-1947) which was inserted by the M.O. 1937.
14. The words, brackets, letters and figures “sub-clauses (a) and (b) of clause (2) or sub-clause (a) or (b) of clause (3) or clause

(4) of” omitted by Act 51 of 1974, s. 7 (w.e.f. 13-12-1974).

15. Subs. by s. 7, ibid., for clause (1) (w.e.f. 13-12-1974).
16. Clause (2) omitted by Act 24 of 1978, s. 5 (w.e.f. 21-7-1978).
17. Subs. by Act 51 of 1974, s. 7, for clause (3) (w.e.f. 13-12-1974).
18. The proviso omitted by Act 62 of 1948, s. 7 and the Schedule (w.e.f. 1-1-1949).
19. Sub-section (2) omitted by Act 51 of 1974, s. 7 (w.e.f. 13-12-1974).


-----

1[18A. Validity of loan or advance not to be questioned.—Notwithstanding anything to the

contrary contained in any other law for the time being in force,—

(a) the validity of any loan or advance granted by the Bank in pursuance of the provisions of this

Act shall not be called in question merely on the ground of non-compliance with the requirements of
such other law as aforesaid or of any resolution, contract, memorandum, articles of association or
other instrument:

Provided that nothing in this clause shall render valid any loan or advance obtained by any

company or co-operative society where such company or co-operative society is not empowered by
its memorandum to obtain loans or advances;

(b) where a loan or advance has been granted under clause (3A) or under clause (3B) or section 17

or a loan or advance granted under clause (3) of section 18 by the Bank to any person has been
applied by such person, wholly or in part, in making a loan or advance to any borrower, any sum
received—

(i) by the borrowing bank on account of bills of exchange in respect of which the declaration

under clause (i) of the proviso to clause (3A) of section 17 has been furnished or in repayment or
realisation of the outstanding loans and advances referred to in clause (ii) of the said proviso or in
the proviso to clause (3B) of the said section, or

(ii) by the borrowing bank or any other person in repayment or realisation of loans and

advances granted to a borrower out of funds obtained by it or by him from the Bank under section
18,

shall be utilised only for the repayment by the borrowing bank or other person, as the case may be, of the
amounts due to be repaid by it or by him to the Bank, and shall be held by it or by him in trust for the
Bank, until such time as the amounts are so repaid.]

**19. Business which the Bank may not transact.—Save as otherwise provided in sections 17,**

18,[2][42] and 45, the Bank may not—

(1) engage in trade or otherwise have a direct interest in any commercial, industrial or other

undertaking except such interest as it may in any way acquire in the course of the satisfaction of any
of its claims: provided that all such interests shall be disposed of at the earliest possible moment;

3[(2) purchase the shares of any banking company or of any other company, or grant loans upon

the security of any such shares;]

(3) advance money on mortgage of, or otherwise on the security of, immovable property or

documents of title relating thereto, or become the owner of immovable property, except so far as is
necessary for its own business premises and residences for its officers and servants;

(4) make loans or advances;
(5) draw or accept bills payable otherwise than on demand;
(6) allow interest on deposits or current accounts.

CHAPTER III


CENTRAL BANKING FUNCTIONS


**20. Obligation of the Bank to transact Government business.—The Bank shall undertake to accept**

monies for account of [4][[5]*** the Central Government [6]***] and to make payments up to the amount
standing to the credit of [7][its account], and to carry out [8][its exchange], remittance and other banking
operations, including the management of the public debt [9][of the Union].

1. Ins. by Act 51 of 1974, s. 8 (w.e.f. 13-12-1974).
2. Ins. by Act 38 of 1956, s. 2 (w.e.f. 6-10-1956).
3. Subs. by Act 32 of 1951, s. 9, for clause (2) (w.e.f. 1-1-1951).
4. Subs. by the M.O. 1937, for certain words.
5. The words “the Secretary of State” omitted by the A.O. 1950.
6. The words and letter “and the Governments of Part A States” omitted by Act 37 of 1956, s. 104 (w.e.f. 1-11-1956).
7. Subs. by s. 104, ibid., for “their accounts respectively” (w.e.f. 1-11-1956).
8. Subs. by s. 104, ibid., for “their exchange” (w.e.f. 1-11-1956).
9. Ins. by s. 104, ibid. (w.e.f. 1-11-1956).


-----

**20A. [Transaction of business for British Military Administration, Burma].—Omitted to the**

_repeal of the Ordinance by Act_ 11 of 1947 which was earlier temporarily inserted by Ordinance 19 of
1945.

**21. Bank to have the right to transact Government business in India.—(1) The** [1] [Central

Government] [2]*** shall entrust the Bank, on such conditions as may be agreed upon, with all [3][its]
money, remittance, exchange and banking transactions in India, and, in particular, shall deposit free of
interest all [3][its] cash balances with the Bank:

Provided that nothing in this sub-section shall prevent the [1][Central Government] [4]*** from carrying

on money transactions at places where the Bank has no branches or agencies, and the [1][Central
Government] [2]*** may hold at such places such balances as [5][it] may require.

(2) The [1][Central Government] [6]*** shall entrust the Bank, on such conditions as may be agreed

upon, with the management of the public debt and with the issue of any new loans.

(3) In the event of any failure to reach agreement on the conditions referred to in this section

the [1][Central Government] shall decide what the conditions shall be.

7[(4) Any agreement made under this section shall be laid, as soon as may be after it is made, before

Parliament.]


8* - - - 

9[21A. Bank to transact Government business of States on agreement.—(1) The Bank may by

agreement with the Government of any [10]*** State [11]*** undertake—

(a) all its money, remittance, exchange and banking transactions in India, including in particular,

the deposit, free of interest, of all its cash balances with the Bank; and


(b) the management of the public debt of, and the issue of any new loans by, that State.

(2) Any Agreement made under this section shall be laid, as soon as may be after it is made, before

Parliament.]

12
[21B. Effect of agreements made between the Bank and certain States before the 1st

**November, 1956.—(1) Any agreement made under section 21 or section 21A between the Bank and the**
Government of a State specified in the Explanation below and in force immediately before the 1st day of
November, 1956, shall, as from that day have effect as if it were an agreement made on that day under
section 21A between the Bank and the Government of the corresponding State subject to such
modifications, if any, being of a character not affecting the general operation of the agreement, as may be
agreed upon between the Bank and the Government of the corresponding State, or in default of such
agreement, as may be made therein by order of the Central Government.


_Explanation.—In this sub-section “corresponding State’’ means,—_


(a) in relation to the agreement between the Bank and the State of Andhra, the State of Andhra

Pradesh;

1. Subs. by the M.O. 1937, for “G.G. in C.
2. The words “and the State Governments” omitted by Act 37 of 1956, s. 104 (w.e.f. 1-11-1956).
3. Subs. by s. 104, ibid., for “their” (w.e.f. 1-11-1956).
4. The words “or any State Government” omitted by s. 104, ibid. (w.e.f. 1-11-1956).
5. Subs. by s. 104, ibid., for “they” (w.e.f. 1-11-1956).
6. The words “and each State Government” omitted by s. 104, ibid. (w.e.f. 1-11-1956).
7. Subs. by s. 104, ibid. for sub-section (4) (w.e.f. 1-11-1956).
8. Sub-section (5) omitted by s. 104, ibid. (w.e.f. 1-11-1956) which was inserted by Act 32 of 1951, s. 3 (w.e.f. 1-11-1951).
9. Ins. by Act 32 of 1951, s. 12 (w.e.f. 1-11-1951).
10. The word and letter “Part B” omitted by Act 37 of 1956, s. 104 (w.e.f. 1-11-1956).
11. The words “(including the autonomous State of Meghalaya)” omitted by Act 81 of 1971, s. 72 (w.e.f. 21-1-1972) which was

earlier inserted by Act 55 of 1969, s. 75 (w.e.f. 2-4-1970).

12. Ins. by Act 37 of 1956, s. 104 (w.e.f. 1-11-1956).


-----

(b) in relation to the agreement between the Bank and any other Part A State as it existed before

the 1st day of November, 1956, the State with the same name; and

(c) in relation to the agreement between the Bank and the Part B State of Mysore or Travancore
Cochin as it existed before the 1st day of November, 1956, the State of Mysore of Kerala
respectively.
(2) Any agreement made under section 21A between the Bank and the Government of the Part B

State of Hyderabad, Madhya Bharat or Saurashtra shall be deemed to have terminated on the 31st day of
October, 1956.]

**22. Right to issue bank notes.—(1) The Bank shall have the sole right to issue bank notes**

in [1] [India], and may, for a period which shall be fixed by the [2] [Central Government] on the
recommendation of the Central Board, issue currency notes of the Government of India supplied to it by
the [2][Central Government], and the provisions of this Act applicable to bank notes shall, unless a contrary
intention appears, apply to all currency notes of the Government of India issued either by the [2][Central
Government] or by the Bank in like manner as if such currency notes were bank notes, and references in
this Act to bank notes shall be construed accordingly.

(2) On and from the date on which this Chapter comes into force the [2][Central Government] shall not

issue any currency notes.

3[22A. Non-applicability of certain provisions to digital form of bank notes.—Nothing contained

in sections 24, 25, 27, 28 and 39 shall apply to the bank notes issued in digital form by the Bank.]

**23. Issue Department.—(1) The issue of bank notes shall be conducted by the Bank in an Issue**

Department which shall be separated and kept wholly distinct from the Banking Department, and the
assets of the Issue Department shall not be subject to any liability other than the liabilities of the Issue
Department as hereinafter defined in section 34.

(2) The Issue Department shall not issue bank notes to the Banking Department or to any other person

except in exchange for other bank notes or for such coin, bullion or securities as are permitted by this Act
to form part of the Reserve.


4* - - - 

5[24. Denominations of notes.—(1) Subject to the provisions of sub-section (2) bank notes shall be

of the denominational value to two rupees, five rupees, ten rupees, twenty rupees, fifty rupees, one
hundred rupees, five hundred rupees, one thousand rupees, five thousand rupees and ten thousand rupees
or of such other denominational values, not exceeding ten thousand rupees, as the Central Government
may, on the recommendation of the Central Board, specify in this behalf.

(2) The Central Government may, on the recommendation of the Central Board, direct the non-issue

or the discontinuance of issue of bank notes of such denominational values as it may specify in this
behalf.]

**25. Form of bank notes.—The design, form the material of bank notes shall be such as may be**

approved by the [2][Central Government] after consideration of the recommendations made by the Central
Board.

**26. Legal tender character of notes.—(1) Subject to the provisions of subsection (2), every bank**

note shall be legal tender at any place in [1][India] in payment, or on account for the amount expressed
therein, and shall be guaranteed by the [2][Central Government].

(2) On recommendation of the Central Board the [2][Central Government] may, by notification in the

Gazette of India, declare that, with effect from such date as may be specified in the notification, any series
of bank notes of any denomination shall cease to be legal tender [6][save at such office or agency of the
Bank and to such extent as may be specified in the notification].

1. Subs. by Act 32 of 1951, s. 2, for “the States” (w.e.f. 1-11-1951).
2. Subs. by the M.O. 1937, for “G.G. in C.”.
3. Ins. by Act 6 of 2022, s. 125 (w.e.f. 30-3-2022).
4. Sub-section (3) omitted by Act 11 of 1947, s. 13 (w.e.f. 1-4-1947) which was inserted by the M.O. 1937.
5. Subs. by Act 58 of 1968, s. 25, for section 24 (w.e.f. 1-2-1969).
5. Subs. by Act 32 of 1951, s. 13, for “save at an office or agency of the Bank” (w.e.f. 1-11-1951).


-----

1* - - - 

2[26A. Certain bank notes to cease to be legal tender.—Notwithstanding anything contained in

section 26, no bank note of the denominational value of five hundred rupees, one thousand rupees or ten
thousand rupees issued before the 13th day of January, 1946, shall be legal tender in payment or on
account for the amount expressed therein.]

**27. Re-issue notes.—The Bank shall not re-issue bank notes which are torn, defaced or excessively**

spoiled.

**28. Recovery of notes lost, stolen, mutilated or imperfect.—** [3] *** Notwithstanding anything

contained in any enactment or rule of law to the contrary, no person shall of right be entitled to recover
from the [4][Central Government] or the Bank, the value of any lost, stolen, mutilated or imperfect currency
note of the Government of India or bank note:

Provided that the Bank may, with the previous sanction of the [4][Central Government], prescribed the

circumstances in and the conditions and limitations subject to which the value of such currency notes or
bank notes may be refunded as of grace and the rules made under this proviso shall be laid on the
table [5]*** of [6][Parliament].


7* - - - 

8[28A. Issue of special bank notes and special one rupee notes in certain cases.—(1) For the

purpose of controlling the circulation of bank notes without India, the Bank may, notwithstanding
anything contained in any other provision of this Act, issue bank notes of such design, form and material
as may be approved under sub-section (3) (hereinafter in this section referred to as special bank notes) of
the denominational values of five rupees, ten rupees and one hundred rupees.

(2) For the purpose of controlling the circulation of Government of India one rupee notes without

India, the Central Government may, notwithstanding anything contained in any other provision of this
Act or in the Currency Ordinance, 1940 (Ord. 4 of 1940) issue Government of India notes of the
denominational value of one rupee of such design, form and material as may be adopted under subsection (3) (hereinafter in this section referred to as special one rupee notes).

(3) The design, form and material of the special bank notes shall be such as may be approved by the

Central Government after consideration of the recommendations made by the Governor and of the special
one rupee notes shall be such as the Central Government may think fit to adopt.


(4) Neither the special bank notes not the special one rupee notes shall be legal tender in India.


(5) The special one rupee note shall be deemed to be included in the expression “rupee coin” for all

the purposes of this Act except section 39, but shall be deemed not to be a currency note for any of the
purposes of this Act.

(6) Where a special bank note is on its face expressed to be payable at a specified office or branch of

the Bank, the obligation imposed by section 39 shall be only on the specified office or branch and,
further, shall be subject to such regulations as may be made under this section.

(7) The Bank may, with the previous sanction of the Central Government, make regulations to

provide for all matters for which provision is necessary or convenient for the purpose of giving effect to
the provisions of this section, and, in particular, the manner in which, and the conditions or limitations
subject to which—

1. Sub-section (3) omitted by Act 11 of 1947, s. 14 (w.e.f. 1-4-1947) which was inserted by the M.O. 1937.
2. Ins. by Act 62 of 1956, s. 2 and the Schedule (w.e.f. 1-11-1956).
3. The brackets and figure “(1)” omitted by Act 11 of 1947, s. 15 (w.e.f. 1-4-1947) which was inserted by the M.O. 1937.
4. Subs. by the M.O. 1937, for “G.G. in C.”.
5. The words “of both Houses” omitted by the A.O. 1948.
6. Subs. by the A.O. 1950, for “the Central Legislature”.
7. Sub-section (2) omitted by Act 11 of 1947, s. 15 (w.e.f. 1-4-1947) which was inserted by the M.O. 1937.
8. Ins. by Act 14 of 1959, s. 2 (w.e.f. 1-5-1959).


-----

(i) bank notes and one rupee notes in circulation in any country outside India may be replaced by

special notes issued under this section;

(ii) any such special notes may be exchanged for any other bank notes or one rupee notes.]

**29. Bank exempt from stamp duty on bank notes.—The Bank shall not be liable to the payment of**

any stamp duty under the Indian Stamp Act, 1899 (2 of 1899) in respect of bank notes[1]*** issued by it.

**30. Powers of Central Government to supersede Central Board.—(1) If in the opinion of**

the [2][Central Government] the Bank fails to carry out any of the obligations imposed on it by or under this
Act [3]*** [4][the Central Government] may, by notification in the Gazette of India, declare the Central
Board to be superseded, and thereafter the general superintendence and direction of the affairs of the
Bank shall be entrusted to such agency as the [2][Central Government] may determine, and such agency
may exercise the powers and do all acts and things which may be exercised or done by the Central Board
under this Act.

(2) When action is taken under this section the [2][Central Government] shall cause a full report of the

circumstances leading to such action and of the action taken to be laid before [5][Parliament] at the earliest
possible opportunity and in any case within three months from the issue of the notification superseding
the Board.

**31. Issue of demand bills and notes.—[6][(1)] No person in [7][India] other than the Bank, or, as**

expressly authorised by this Act the [2][Central Government] shall draw, accept, make or issue any bill of
exchange, hundi, promissory note or engagement for the payment of money payable to bearer on demand,
or borrow, owe or take up any sum or sums of money on the bills, hundis or notes payable to bearer on
demand of any such person:

Provided that cheques or drafts, including hundis, payable to bearer on demand or otherwise may be

drawn on a person’s account with a banker, shroff or agent.

8[(2) Notwithstanding anything contained in the Negotiable Instruments Act, 1881, (26 of 1881) no

person in [7][India] other than the Bank or, as expressly authorised by this Act, the Central Government
shall make or issue any promissory note expressed to be payable to the bearer of the instrument.]

9[(3) Notwithstanding anything contained in this section, the Central Government may authorise any

scheduled bank to issue electoral bond.

_Explanation.—For the purposes of this sub-section, “electroal bond” means a bond issued by any_

scheduled bank under the scheme as may be notified by the Central Government.]

**32.** [Penalty].—Omitted by the Reserve Bank of India (Amendment) Act, 1974 (51 _of 1974),_ _s._

9(w.e.f. 13-12-1974).

**33. Assets of the Issue Department.—(1) The assets of the Issue Department shall consist of gold**

coin, gold bullion, [10][foreign securities], rupee coin and rupee securities to such aggregate amount as is
not less than the total of the liabilities of the Issue Department as hereinafter defined.

11[(2) The aggregate value of the gold coin, gold bullion and foreign securities held as assets and the

aggregate value of the gold coin and gold bullion so held shall not at any time be less than two hundred
crores of rupees and one hundred and fifteen crores of rupees, respectively.]

1. The words “or Burma notes” omitted by Act 11 of 1947, s. 16 (w.e.f. 1-4-1947) which was earlier inserted by the M.O. 1937.
2. Subs. by the M.O. 1937, for “G.G. in C.”.
3. The words “or by or under the law of Burma” omitted by Act 11 of 1947, s. 17 (w.e.f. 1-4-1947) which was earlier inserted by

the M.O. 1937.

4. Subs. by the M.O. 1937, for “he”.
5. Subs. by the A.O. 1950, for “the Central Legislature”.
6. Section 31 renumbered as sub-section (1) thereof by Act 23 of 1946, s. 2 (w.e.f. 10-11-1946).
7. Subs. by Act 32 of 1951, s. 2, for “the States” (w.e.f. 1-11-1951).
8. Added by Act 23 of 1946, s. 2 (w.e.f. 10-11-1946).
9. Ins. by Act 7 of 2017, s. 134 (w.e.f. 1-4-2017).
10. Subs. by Act 62 of 1948, s. 7 and the Schedule, for “sterling securities” (w.e.f. 1-1-1949).
11. Subs. by Act 48 of 1957, s. 2, for sub-section (2) (w.e.f. 31-10-1957).


-----

1[(3) The remainder of the assets shall be held in rupee coin, Government of India rupee securities of

any maturity, promissory notes drawn by the National Bank for any loans or advances under clause (4E)
of section 17 and such bills of exchange and promissory notes payable in India as are eligible for
purchase by the Bank under sub-clause (a) or sub-clause (b) or sub-clause (bb) of clause (2) of section 17
or under clause (1) of section 18.]

(4) For the purposes of this section, gold coin the gold bullion shall be valued at [2][a price not

exceeding the international market price for the time being obtaining], rupee coin shall be valued at its
face value, and securities shall be valued [3][at rates not exceeding the market rates] for the time being
obtaining.

(5) Of the gold coin and gold bullion held as assets, not less than seventeen-twentieths shall be held

in [4][India], and all gold coin and gold bullion held as assets shall be held in the custody of the Bank or its
agencies:

Provided that gold belonging to the Bank which is in any other bank or in any mint or treasury or in

transit may be reckoned as part of the assets.

5[(6) For the purposes of this section, the foreign securities which may be held as part of the assets

shall be—

(i) securities of the following kinds payable in the currency of any foreign country which is a

member of the International Monetary Fund, namely:—


(a) balances with the bank which is the principal currency authority of that foreign country

and any other balances or securities in foreign currency maintained with or issued by the
International Monetary Fund, the International Bank for Reconstruction and Development, the
International Development Association or the International Finance Corporation [6] [or Asian
Development Bank] or the Bank for International Settlements or [7][any banking or financial
institution [8][approved] by the Central Government] in this behalf provided that they are repayable
within a [9][period of ten years];

(b) bills of exchange bearing two or more good signatures and drawn on and payable at any

place in that foreign country and having a maturity not exceeding ninety days; and

(c) Government securities of that foreign country maturing [10][within ten years];


(ii) any drawing rights representing a liability of the International Monetary Fund.]


**34. Liabilities of Issue Department.—(1) The Liabilities of the Issue Department shall be an amount**

equal to the total of the amount of the currency notes of the Government of India and bank notes for the
time being in circulation.

11*   -   -   -   
12*   -   -   -   

**35. [Initial assets and liabilities].—Omitted by the Reserve Bank (Transfer to Public Ownership)**

_Act, 1948 (62 of 1948), s. 7 and the Schedule (w.e.f. 1-1-1949)._

1. Subs. by Act 61 of 1981, s. 61 and the Second Schedule, for sub-section (3) (w.e.f. 12-7-1982).
2. Subs. by Act 8 of 1991, s. 2, for “0.118489 grammes of fine gold per rupee” (w.e.f. 15-10-1990).
3. Subs. by Act 58 of 1968, s. 26, for “at the market rate” (w.e.f. 1-2-1969).
4. Subs. by Act 32 of 1951, s. 2, for “the States” (w.e.f. 1-11-1951).
5. Subs. by Act 51 of 1974, s. 10, for sub-section (6) (w.e.f. 13-12-1974).
6. Ins. by Act 24 of 1978, s. 6 (w.e.f. 21-7-1978).
7. Subs. by s. 6, ibid., for “any commercial bank notified by the Central Government” (w.e.f. 21-7-1978).
8. Subs. by Act 1 of 1984, s. 4, for “notified” (w.e.f. 15-2-1984).
9. Subs. by Act 24 of 1978, s. 6, for “period of five years” (w.e.f. 21-7-198).
10. Subs. by s. 6, ibid., for “within five years” (w.e.f. 21-7-198).
11. Sub-section (2) omitted by Act 55 of 1963, s. 2 (w.e.f. 1-2-1964).
12. Sub-section (3) omitted by s. 2, ibid. (w.e.f. 1-2-1964) which was earlier inserted by the M.O. 1937.


-----

**36. [Method of dealing with fluctuations in rupee coin assets].—Omitted by the Banking Laws**

(Miscellaneous Provisions) Act, 1963 (55 of 1963), s. 3 (w.e.f. 1-2-1964).

1 [37. Suspension of assets requirements as to foreign securities.—Notwithstanding anything

contained in the foregoing provisions, the Bank may, with the previous sanction of the Central
Government, for periods not exceeding six months in the first instance, which may, with the like sanction,
be extended from time to time by period not exceeding three months at a time, hold as assets foreign
securities of less amount in value than that required by sub-section (2) of section 33.


2* - - - *]


**38. Obligations of Government and the Bank in respect of rupee coin.—The** [3] [Central

Government] shall undertake not [4]*** to put into circulation any rupees, except through the Bank, [5]***
and the Bank shall undertake not to dispose of rupee coin otherwise than for the purposes of
circulation [6]***.

**39. Obligation to supply different forms of currency.—(1) The Bank shall issue rupee coin on**

demand in exchange for bank notes and currency notes of the Government of India and shall issue
currency notes or bank notes on demand in exchange for coin which is legal tender under the Indian
Coinage Act, 1906 (3 of 1906).

(2) The Bank shall, in exchange for currency notes or bank notes of [7][two] rupees or upwards, supply

currency notes or bank notes of lower value or other coins which are legal tender under the Indian
Coinage Act, 1906 (3 of 1906), in such quantities as may, in the opinion of the Bank, be required for
circulation; and the [3][Central Government] shall supply such coins to the Bank on demand. If
the [3][Central Government] at any time fails to supply such coins, the Bank shall be released from its
obligations to supply them to the public.

8[40. Transactions in foreign exchange.—The Bank shall sell to or buy from any authorised person

who makes a demand in that behalf at its office in Bombay, Calcutta, Delhi or Madras [9][or at such or its
branches as the Central Government may, by order determine], foreign exchange at such rates of
exchange and on such conditions as the Central Government may from time to time by general or special
order determine, having regard so far as rates of exchange are concerned to its obligations to the
International Monetary Fund:

Provided that no person shall be entitled to demand to buy or sell foreign exchange of a value less

than two lakhs of rupees.

_Explanation.—In the section “authorised person” means a person who is entitled by or under_

the [10][Foreign Exchange Regulation Act, 1973 (46 of 1973)], to buy, or as the case may be, sell, the
foreign exchange to which his demand relates.]

**41A.** [Obligation to provide remittance between India and Burma].—Omitted by the Reserve

_Bank of India (Amendment) Act, 1947 (11 of 1947), s. 22 (w.e.f. 1-4-1947). Earlier it was inserted by the_
M.O. 1937.

**42. Cash reserves of scheduled banks to be kept with the Bank.—[11][(1) Every bank included in**

the Second Schedule shall maintain with the Bank an average daily balance the amount of which shall not

1. Subs. by Act 38 of 1956, s. 4, for section 37 (w.e.f. 6-10-1956).
2. The proviso omitted by Act 48 of 1957, s. 3 (w.e.f. 31-10-1957).
3. Subs. by the M.O. 1937, for “G.G. in C”.
4. The words and figures “to re-issue any rupee coin delivered under section 36 nor” omitted by Act 55 of 1963, s. 4 (w.e.f. 1-2
1964).

5. The words “and as provided in that section” omitted by Ordinance 4 of 1940, s. 3.
6. The words “or by delivery to the Central Government under that sections” omitted by Act 55 of 1963, s. 4 (w.e.f. 1-2-1964).
7. Subs. by Act 62 of 1948, s. 7 and the Schedule, for “five” (w.e.f. 1-1-1949).
8. Subs. by Act 23 of 1947, s. 4, for sections 40 and 41 (w.e.f. 18-4-1947).
9. Ins. by Act 54 of 1953, s. 5 (w.e.f. 30-12-1953).
10. Subs. by Act 1 of 1984, s. 5, for “Foreign Exchange Regulation Act, 1947 (7 of 1947)” (w.e.f. 15-2-1984).
11. Subs. by Act 38 of 1956, s. 5, for sub-section (1) (w.e.f. (6-10-1956).


-----

be less than [1][such per cent. of the total of the demand and time liabilities in India of such bank as shown
in the return referred to in sub-section (2), as the Bank may from time to time, having regard to the needs
of securing the monetary stability in the country, notify in the Gazette of India]:


2* - - - 

_Explanation.—For the purposes of this section,—_

(a) “average daily balance” shall mean the average of the balances held at the close of business of

each day [3][of a fortnight];

4[(b) “fortnight” shall mean the period from Saturday to the second following Friday, both days

inclusive;]

5[(c) “liabilities” shall not include—

(i) the paid-up capital or the reserves or any credit balance in the profit and loss account of

the bank;

(ii) the amount of any loan taken from the Bank [6]*** [7][or from the Exim Bank] [8][or from the

Reconstruction Bank] [9][or from the National Housing Bank] or from the [10][National Bank] [11][or
from the Small Industries Bank [12][or from the National Bank for Financing Infrastructure and
Development or from the other development financial institution]] [13]***;

(iii) in the case of a State co-operative bank, also any loan taken by such bank from a State

Government [14][or from the National Co-operative Development Corporation established under
the National Co-operative Development Corporation Act, 1962 (26 of 1962)] and any deposit of
money with such bank representing the reserve fund or any part thereof [15]*** maintained with it
by any co-operative society within its area of operation;]

16[(iv) in the case of a State co-operative bank, which has granted an advance against any

balance maintained with it, such balance to the extent of the amount outstanding in respect of
such advance;]

13[(v) in the case a Regional Rural Bank, also any loan taken by such bank from its Sponsor

Bank;]


15[(d) the aggregate of the “liabilities” of a Scheduled bank which is not a State co-operative

bank, to,—


(i) the State Bank;
(ii) a subsidiary bank as defined in section 2 of the State Bank of India (Subsidiary Banks)

Act, 1959 (38 of 1959);

(iii) a corresponding new bank constituted by section 3 of the Banking Companies

(Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970);

1. Subs. by Act 26 of 2006, s. 3, for “three per cent. of the total of the demand and time liabilities in India of such bank as shown

in the return referred to in sub-section (2)” (w.e.f. 1-4-2007).

2. The proviso omitted by s. 3, ibid. (w.e.f. 1-4-2007).
3. Subs. by Act 1 of 1984, s. 6, for “of a week” (w.e.f. 29-3-1985).
4. Subs. by s. 6, ibid. for clause (b) (w.e.f. 29-3-1985).
5. Subs. by Act 23 of 1965, s. 6, for clause (c) (w.e.f. 1-3-1966).
6. The words “or from the Development Bank” omitted by Act 53 of 2003, s. 12 and the Schedule (w.e.f. 2-7-2004).
7. Ins. by Act 28 of 1981, s. 40 and the Second Schedule (w.e.f. 1-1-1982).
8. Ins. by Act 62 of 1984, s. 71 and the Third Schedule (w.e.f. 20-3-1985).
9. Ins. by Act 53 of 1987, s. 56 and the Second Schedule (w.e.f. 9-7-1988).
10. Subs. by Act 61 of 1981, s. 61 and the Second Schedule, for “Agricultural Refinance and Development Corporation”

(w.e.f. 12-7-1982).

11. Ins. by Act 39 of 1989, s. 53 and the Second Schedule (w.e.f. 7-3-1990).
12. Ins. by Act 17 of 2021, s. 47 and the Second Schedule (w.e.f. 19-4-2021).
13. The words “or from the State Bank or from any other bank notified by the Central Government in this behalf, and” omitted by

Act 51 of 1974, s. 11 (w.e.f. 13-12-1974).

14. Ins. by Act 1 of 1984, s. 6 (w.e.f. 29-3-1985).
15. The words “required to be” omitted by Act 51 of 1974, s. 11 (w.e.f. 13-12-1974).
16. Ins. by s. 11, ibid. (w.e.f. 13-12-1974).


-----

1
[(iiia) a corresponding new bank constituted by section 3 of the Banking Companies

(Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980);]

(iv) a banking company as defined in clause (c) section 5 of the Banking Regulation Act,

1949 (10 of 1949);


(v) a co-operative bank; or


(vi) any other financial institution notified by the Central Government in this behalf,

shall be reduced by the aggregate of the liabilities of all such banks and institutions to the scheduled bank;

(e) the aggregate of the “liabilities” of a scheduled bank which is a State co-operative bank, to,—


(i) the State Bank;


(ii) a subsidiary bank as defined in section 2 of the State Bank of India (Subsidiary Banks)

Act, 1959 (38 of 1959);

(iii) a corresponding new bank constituted by section 3 of the Banking Companies

(Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970);

1[(iiia) a corresponding new bank constituted by section 3 of the Banking Companies

(Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980);]

(iv) a banking company as defined in clause (c) of section 5 of the Banking Regulation Act,

1949 (10 of 1949); or


(v) any other financial institution notified by the Central Government in, this behalf,


shall be reduced by the aggregate of the liabilities of all such banks and institutions to the State cooperative bank.]

(1A) Notwithstanding anything contained in sub-section (1), the Bank may, by notification in the

Gazette of India, direct that every scheduled bank shall, with effect from such date as may be specified in
the notification, maintain with the Bank, in addition to the balance prescribed by or under sub-section (1),
an additional average daily balance the amount of which shall not be less than the [2][rate specified in the
notification, such additional balance being calculated with reference to the excess of the total of the
demand and time liabilities of the bank as shown in the return referred to in sub-section (2) over the total
of its demand and time liabilities] at the close of business on the date specified in the notification as
shown by such return so however, that the additional balance shall, in no case, be more than such excess:

3[Provided that the Bank may, by a separate notification in the Gazette of India, specify different

dates in respect of a Bank subsequently included in the Second Schedule].


4* - - - 

1[1C) The Bank may, for the purposes of this section, specify from time to time with reference to any

transaction or class of transactions that such transaction or transactions shall be regarded as liability in
India of a scheduled bank, and if any question arises as to whether any transaction or class of transactions
shall be regarded, for the purposes of this section, as liability in India of a scheduled bank, the decision of
the Bank thereon shall be final.]

5[(2) Every scheduled bank shall send to the Bank a return signed by two responsible officers of such

bank showing—

(a) the amount of its demand and time liabilities and the amount of its borrowings from banks in

India, [6][classifying them into demand and time liabilities],


1. Ins. by Act 1 of 1984, s. 6 (w.e.f. 29-3-1985).
2. Subs. by Act 35 of 1962, s. 3, for certain words (w.e.f. 15-9-1962).
3. Added by Act 1 of 1984, s. 6 (w.e.f. 29-3-1985).
4. Sub-sections (1AA) and (1B) omitted by Act 26 of 2006, s. 3 (w.e.f. 1-4-2007).
5. Subs. by Act 32 of 1951, s. 16, for sub-section (2) (w.e.f. 1-11-1951).
6. Subs. by Act 51 of 1974, s. 11, for “other than the State Bank and any other bank notified by the Central Government in this

behalf” (w.e.f. 13-12-1974).


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1* - - - 

(b) the total amount of legal tender notes and coins held by it in India,


(c) the balance held by it at the Bank in India,

(d) the balances held by it at other banks in current account and the money at call and short notice

in India,

(e) the investments (at book value) in Central and State Government securities including treasury

bills and treasury deposit receipts,

(f) the amount of advances in India,

(g) the inland bills purchased and discounted in India [2] [and foreign bills purchased and

discounted].

3[at the close of business on each alternate Friday, and every such return shall be sent not later than seven
days after the date to which it relates]:

4[Provided that the Bank may, by notification in the Gazette of India, delete or modify or add to any

of the particulars specified in the foregoing clauses:

Provided further that] where [5] [such alternate] Friday is a public holiday under the Negotiable

Instruments Act, 1881 (26 of 1881), for one or more offices of a scheduled bank the return shall give the
preceding working day’s figures in respect of such office or offices, but shall nevertheless be deemed to
relate to that Friday:

6[Provided also that where the Bank is satisfied that the furnishing of a fortnightly return under this

sub-section is impracticable in the case of any scheduled bank by reason of the geographical position of
the bank and its branches, the Bank may allow such bank—

(i) to furnish a provisional return for the fortnight within the period aforesaid to be followed by a

final return not later than twenty days after the date to which it relates, or

(ii) to furnish in lieu of a fortnightly return a monthly return to be sent not later than twenty days

after the end of the month to which it relates giving the details specified in this sub-section in respect
of such bank at the close of business for the month.]]

5[(2A) Where the last Friday of a month is not an alternate Friday for the purpose of sub-section(2),

every scheduled bank shall send to the Bank, a special return giving the details specified in sub-section
(2) as at the close of business on such last Friday or where such last Friday is a public holiday under the
Negotiable Instruments Act, 1881 (26 of 1881), as at the close of business on the preceding working day
and such return shall be sent not later than seven days after the date to which it relates.]

7[(3) If the average daily balance held at the Bank by a scheduled bank during any 8[fortnight] is

below the minimum prescribed by or under sub-section (1) or sub-section (1A), such scheduled bank shall
be liable to pay to the Bank in respect of that [8][fortnight] penal interest at a rate of three per cent. above
the bank rate on the amount by which such balance with the Bank falls short of the prescribed minimum,
and if during the next succeeding [8][fortnight], such average daily balance is still below the prescribed
minimum, the rates of penal interest shall be increased to a rate of five per cent, above the bank rate in
respect of that [8][fortnight] and each subsequent[ 8][fortnight] during which the default continues on the
amount by which such balance at the Bank falls short of the prescribed minimum.]

1. Clause (aa) omitted by Act 51 of 1974, s. 11 (w.e.f. 13-12-1974). Earlier inserted by Act 54 of 1953, s. 6 (w.e.f. 30-12-1953).
2. Ins. by Act 54 of 1953, s. 6 (w.e.f. 30-12-1953).
3. Subs. by Act 1 of 1984, s. 6, for “at the close of business on each Friday, and every such return shall be sent not later than five

days after the date to which it relates” (w.e.f. 29-3-1985).

4. Subs. by Act 51 of 1974, s. 11, for “Provided that” (w.e.f. 13-12-1974).
5. Ins. by Act 1 of 1984, s. 6 (w.e.f. 29-3-1985).
6. Subs. by s. 6, ibid., for the third proviso (w.e.f. 29-3-1985).
7. Subs. by Act 38 of 1956, s. 5, for sub-section (3) (w.e.f. 6-10-1956).
8. Subs. by Act 1 of 1984, s. 6, for “week” (w.e.f. 29-3-1985).


-----

1[(3A) When under the provisions of sub-section (3) penal interest at the increased rate of five per

cent, above the bank rate has become payable by a scheduled bank, [2][if thereafter the average daily
balance held at the Bank during the next succeeding [3][fortnight] is still below the prescribed minimum,—

(a) every director, manager or secretary of the scheduled bank, who is knowingly and wilfully a

party to the default, shall be punishable with fine which may extend to five hundred rupees and with a
further fine which may extend to five hundred rupees for each subsequent [3][fortnight] during which
the default continues, and

(b) the Bank may prohibit the scheduled bank from receiving after the said [3][fortnight] any fresh

deposit,]

and, if default is made by the scheduled bank in complying with the prohibition referred to in clause (b),
every director and officer of the scheduled bank who is knowingly and wilfully a party to such default or
who through negligence or otherwise contributes to such default shall in respect of each such default be
punishable with fine which may extend to five hundred rupees and with a further fine which may extend
to five hundred rupees for each day after the first on which a deposit received in contravention of such
prohibition is retained by the scheduled bank.

_Explanation.—In this sub-section “officer” includes a [4]*** manager, secretary, branch manager, and_

branch secretary.]

(4) Any scheduled bank failing to comply with the provisions of sub-section (2) [5][shall be liable to

pay to the Bank] a penalty of one hundred rupees for each day during which the failure continues.

6[(5) (a) The penalties imposed by sub-sections (3) and (4) shall be payable within a period of

fourteen days from the date on which a notice issued by the Bank demanding the payment of the same is
served on the scheduled bank, and in the event of failure of the scheduled bank to pay the same within
such period, may be levied by a direction of the principal civil court having jurisdiction in the area where
an office of the defaulting bank is situated, such direction to be mode only upon an application made in
this behalf to the court by the Bank;

(b) when the court makes a direction under clause (a), it shall issue a certificate specifying the sum

payable by the scheduled bank and every such certificate shall be enforceable in the same manner as if it
were a decree made by the court in a suit;

(c) notwithstanding anything contained in this section, if the Bank is satisfied that the defaulting bank

and sufficient cause for its failure to comply with the provisions of sub-section (1), (1A) or (2), it may not
demand the payment of the penal interest of the penalty, as the case may be.]

7[(6) The Bank shall, save as hereinafter provided, by notification in the Gazette of India,—

(a) direct the inclusion in the Second Schedule of any bank not already so included which carries

on the business of banking [8][in India] and which—

(i) has a paid-up capital and reserve of an aggregate value of not less than five lakhs or

rupees, and

(ii) satisfies and Bank that its affairs are not being conducted in a manner detrimental to the

interests of its depositors, and


1. Ins. by Act 38 of 1940, s. 2 (w.e.f. 27-22-1940).
2. Subs. by Act 38 of 1956, s. 5, for certain words (w.e.f. 6-10-1956).
3. Subs. by Act 1 of 1984, s. 6, for “week” (w.e.f. 29-3-1985).
4. The words “managing agent” omitted by Act 32 of 1951, s. 16 (w.e.f. 1-11-1951).
5. Subs. by s. 16, _ibid., for “shall be liable to pay to the Central Government or to the Bank, as the case may be, or to each,”_

(w.e.f. 1-11-1951).

6. Subs. by Act 35 of 1962, s. 4, for sub-section (5) (w.e.f. 15-9-1962).
7. Subs. by Act 10 of 1949, s. 55 and the First Schedule, for sub-section (6) (w.e.f. 16-3-1949).
8. Subs. by Act 32 of 1951, s. 16, for “in any State of India” (w.e.f. 1-11-1951).


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(iii) [1][is a State co-operative bank or a company] as defined [2][section 3of the Companies Act,

1956 (1 of 1956), or an institution notified by the Central Government in this behalf] or a
corporation or a company incorporated by or under any law in force in any place [3][outside India];


(b) direct the exclusion from that Schedule of any scheduled bank,—


(i) the aggregate value of whose paid-up capital and reserves becomes at any time less than

five lakhs of rupees, or

(ii) which is, in the opinion of the Bank after making an inspection under section 35 of the

4[Banking Regulation Act, 1949 (10 of 1949)], conducting its affairs to the detriment of the
interests of its depositors, or

(iii) which goes into liquidation or otherwise ceases to carry on banking business:

Provided that the Bank may, on application of the scheduled bank concerned and subject to

such conditions, if any, as it may impose, defer the making of a direction under sub-clause (i) or
sub-clause (ii) of clause (b) for such period as the Bank consider reasonable to give the scheduled
bank an opportunity of increasing the aggregate value of its paid-up capital and reserves to not
less than five lakhs of rupees or, as the case may be, of removing the defects in the conduct of its
affairs;

(c) alter the description in that Schedule whenever any scheduled bank changes its name.

_Explanation.—In this sub-section the expression “value” means the real or exchangeable value and_

not the nominal value which may be shown in the books of the bank concerned; and if any dispute arises
in computing the aggregate value of the paid-up capital and reserves of a bank, a determination thereof by
the Bank shall be final for the purposes of this sub-section.]

5[(6A) In considering whether a State co-operative bank or a regional rural bank should be included in

or excluded from the Second Schedule, it shall be competent for the Bank to act on a certificate from the
National Bank on the question whether or not a State co-operative bank or a regional rural bank, as the
case may be, satisfies the requirements as to paid-up capital and reserves or whether its affairs are not
being conducted in a manner detrimental to the interests of its depositors.]

6[(7) The Bank may, for such period and subject to such conditions as may be specified, grant to any

scheduled bank such exemptions from the provisions of this section as it thinks fit with reference to all or
any of its offices or with reference to the whole or any part of its assets and liabilities.]

7[43. Publication of consolidated statement by the Bank.—The Bank shall cause to be published

each [8][fortnight] a consolidated statement showing the aggregate liabilities and assets of all the scheduled
banks together, based on the returns and information received under this Act or any other law for the time
being in force.]

9[43A. Protection of action taken in good faith.—(1) No suit or other legal proceeding shall lie

against the Bank or any of its officers for anything which is in good faith done or intended to be done in
pursuance of section 42 or section 43 [10][or in pursuance of the provisions of Chapter IIIA].

(2) No suit or other legal proceeding shall lie against the Bank or any of its officers for any damage

caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance
of section 42 or section 43 [10][or in pursuance of the provisions of Chapter IIIA].]

1. Subs. by Act 23 of 1965, s. 6, for “is a company” (w.e.f. 1-3-1966).
2. Subs. by Act 19 of 1957, s. 4, for “clause (2) of section 2 of the Indian Companies Act, 1913 (7 of 1913)” (w.e.f. 8-6-1957).
3. Subs. by Act 32 of 1951, s. 16, for “outside the States of India” (w.e.f. 1-11-1951).
4. Subs. by Act 51 of 1974, s. 3, for “Banking Companies Act, 1949” (w.e.f. 13-12-1974).
5. Ins. by Act 61 of 1981, s. 61 and the Second Schedule (w.e.f. 12-7-1982).
6. Ins. by Act 32 of 1951, s. 16 (w.e.f. 1-11-1951).
7. Subs. by Act 51 of 1974, s. 12, for section 43 (w.e.f. 13-12-1974).
8. Subs. by Act 1 of 1984, s. 6, for “week” (w.e.f. 29-3-1985).
9. Ins. by Act 54 of 1953, s. 7 (w.e.f. 30-12-1953).
10. Ins. by Act 35 of 1962, s. 5 (w.e.f. 15-9-1962).


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**44. [Power to require returns from co-operative banks].—[Omitted by the Banking Laws**

(Application to Co-operative Societies) Act, 1965 (23 of 1965), s. 7 (w.e.f. 1-3-1966).]

1[45. Appointment of agents.—(1) Unless otherwise directed by the Central Government with

reference to any place, the Bank may, having regard to public interest, convenience of banking, banking
development and such other factors which in its opinion are relevant in this regard, appoint the National
Bank, or the State Bank, or a corresponding new bank constituted under section 3 of the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or a corresponding new
bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1980 (40 of 1980), or any subsidiary bank as defined in the State Bank of India (Subsidiary Banks)
Act, 1959 (38 of 1959), as its agent at all places, or at any place in India for such purposes as the Bank
may specify.

(2) When any bank is appointed by the Bank as its agent under sub-section (1) to receive on behalf of

the Bank any payment required to be made into the Bank, or any bill, hundies or other securities required
to be delivered into the Bank, under any law or rule, regulations or other instructions having the force of
law, the same may be paid or delivered into the bank so appointed as the agent of the Bank.]


2[CHAPTER IIIA


COLLECTION AND FURNISHING OF CREDIT INFORMATION


**45A. Definitions.—In this Chapter, unless the context otherwise requires,—**

(a) “banking company” means a banking company as defined in section 5 of the [3][Banking

Regulation Act, 1949 (10 of 1949)] and includes the State Bank of India, [4][any subsidiary bank as
defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), any corresponding new
bank constituted by section 3 of the Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1970 (5 of 1970), and any other financial institution notified by the Central Government in this
behalf];

(b) “borrower” means any person to whom any credit limit has been sanctioned by any banking

company, whether availed of or not, and includes—


(i) in the case of a company or corporation, its subsidiaries;

(ii) in the case of a Hindu undivided family, any member thereof or any firm in which such

member is a partner;

(iii) in the case of a firm, any partner thereof or any other firm in which such partner is a

partner; and

(iv) in the case of an individual, any firm in which such individual is a partner;

(c) “credit information” means any information relating to—

(i) the amounts and the nature of loans or advances and other credit facilities granted by a

banking company to any borrower or class of borrowers;

(ii) the nature of security taken from any borrower [5][or class of borrowers] for credit facilities

6[granted to him or to such class;]

(iii) the guarantee furnished by a banking company for any of its customers [5][or any class of

its customers];

1. Subs. by Act 61 of 1981, s. 61 and the Second Schedule, for section 45 (w.e.f. 12-7-1982).
2. Ins. by Act 35 of 1962, s. 6 (w.e.f. 1-9-1962).
3. Subs. by Act 51 of 1974, s. 3, for “Banking Companies Act, 1949” (w.e.f. 13-12-1974).
4. Subs. by s. 13, ibid., for “or any other banking or financial institution notified by the Central Government in this behalf” (w.e.f.

13-12-1974).

5. Ins. by s. 13, ibid., (w.e.f. 13-12-1974).
6. Subs. by s. 13, ibid., for “granted to him; and” (w.e.f. 13-12-1974).


-----

1[(iv) the means, antecedents, history of financial transactions and the creditworthiness of any

borrower or class of borrowers;

(v) any other information which the Bank may consider to be relevant for the more orderly

regulation of credit or credit policy.]

**45B. Power of Bank to collect credit information.—The Bank may—**

(a) collect, in such manner as it may think fit, credit information from banking companies; and

(b) furnish such information to any banking company in accordance with the provisions of

section 45D.

**45C. Power to call for returns containing credit information.—(1) For the purpose of enabling the**

Bank to discharge its functions under this Chapter, it may at any time direct any banking company to
submit to it such statements relating to such credit information and in such form and within such time as
may be specified by the Bank from time to time.

(2) A banking company shall, notwithstanding anything to the contrary contained in any law for the

time being in force on in any instrument regulating the constitution thereof or in any agreement executed
by it, relating to the secrecy of its dealings with its constituents, be bound to comply with any direction
issued under sub-section (1).

**45D. Procedure for furnishing credit information to banking companies.—(1) A banking**

company may, in connection with any financial arrangement entered into or proposed to be entered into
by it, with any person, make an application to the Bank in such form as the Bank may specify requesting
it to furnish the applicant with such credit information as may be specified in the application.

(2) On receipt of an application under sub-section (1), the Bank shall, as soon as may be, furnish the

applicant with such credit information relating to the matters specified in the application, as may be in its
possession:

Provided that the information so furnished shall not disclose the names of the banking companies

which have submitted such information to the Bank.

(3) The Bank may in respect of each application levy such fees, not exceeding twenty-five rupees, as

it may deem fit for furnishing credit information.

**45E. Disclosure of information prohibited.—(1) Any credit information contained in any statement**

submitted by a banking company under section 45C or furnished by the Bank to any banking company
under section 45D, shall be treated as confidential and shall not, except for the purposes of this Chapter,
be published or otherwise disclosed.

(2) Nothing in this section shall apply to—

(a) the disclosure by any banking company, with the previous permission of the Bank, of any

information furnished to the Bank under section 45C;


(b) the publication by the Bank, if it considers necessary in the public interest so to do, of any

information collected by it under section 45C, in such consolidated form as it may think fit without
disclosing the name of any banking company or its borrowers;

2 [(c) the disclosure or publication by the banking company or by the Bank of any credit

information to any other banking company or in accordance with the practice and usage customary
among bankers or as permitted or required under any other law;

3
[(d) the disclosures of any credit information under the Credit Information Companies

(Regulation) Act, 2005 (30 of 2005):]

1. Ins. by Act 51 of 1974, s. 13 (w.e.f. 13-12-1974).
2. Ins. by s. 14, ibid. (w.e.f. 13-12-1974).
3. Ins. by Act 30 of 2005, s. 34 and the Schedule (w.e.f. 14-12-2006).


-----

Provided that any credit information received by a banking company under this clause shall not

be published except in accordance with the practice and usage customary among bankers or as
permitted or required under any other law.]

(3) Notwithstanding anything contained in any law for the time being in force, no court, tribunal or

other authority shall compel the Bank or any banking company to produce or to give inspection of any
statement submitted by that banking company under section 45C or to disclose any credit information
furnished by the Bank to that banking company under section 45 D.

**45F. Certain claims for compensation barred.—No person shall have any right, whether in**

contract or otherwise, to any compensation for any loss incurred by reason of the operation of any of the
provisions of this Chapter.

**45G. [Penalties].—Omitted by the Reserve Bank of India (Amendment) Act, 1974 (51 of l974), s. 15**

(w.e.f. 13-12-1974).]

1[CHAPTER IIIB

PROVISIONS RELATING TO NON-BANKING INSTITUTIONS RECEIVING DEPOSITS AND

FINANCIALINSTITUTIONS

**45H. Chapter IIIB not to apply in certain cases.—The provisions of this Chapter shall not apply to**

the State Bank or a banking company as defined in section 5 of the [2][Banking Regulation Act, 1949 (10 of
1949)] or [3][a corresponding new bank as defined in clause (da) of section 5 of that Act or a subsidiary
bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959)] or [4][a Regional
Rural Bank or a co-operative bank] or a primary agricultural credit society or a primary credit society]:

Provided that for the purposes of this Chapter, the [5] [Tamil Nadu Industrial Investment

Corporation Limited] shall not be deemed to be a banking company.

**45-I. Definitions.—In this Chapter, unless the context otherwise requires,—**

6[(a) “business of a non-banking financial institution” means carrying on the business of a

financial institution referred to in clause (c) and includes business of a non-banking financial
company referred to in clause (f);]

7[(aa)] “company” means a company as defined in section 3 of the Companies Act, 1956 (1 of

1956), and includes a foreign company within the meaning of section 591 of that Act;


(b) “corporation” means a corporation incorporated by an Act of any legislature;


8[(bb) “deposit” includes and shall be deemed always to have include any receipt of money by

way of deposit or loan or in any other form, but does not include,—


(i) amounts raised by way of share capital;


(ii) amounts contributed as capital by partners of a firm;

(iii) amounts received from a scheduled bank or a co-operative bank or any other banking

company as defined in clause (c) of section 5 of a Banking Regulation Act, 1949 (10 of 1949);


(iv) any amount received from,—


9* - - - 

(b) a State Financial Corporation,

1. Ins. by Act 55 of 1963, s. 5 (w.e.f. 1-2-1964).
2. Subs. by Act 51 of 1974, s. 3, for “Banking Companies Act, 1949” (w.e.f. 13-12-1974).
3. Subs. by Act 1 of 1984, s. 8, for “a banking institution notified under section 51 of that Act” (w.e.f. 15-2-1984).
4. Subs. by Act 21 of 1976, s. 33, for “a co-operative bank” (w.e.f. 26-9-1975).
5. Subs. by Act 51 of 1974, s. 16, for “Madras Industrial Investment Corporation Limited” (w.e.f. 13-12-1974).
6. Ins. by Act 23 of 1997, s. 2 (w.e.f. 9-1-1997).
7. Clause (a) renumbered as clause (aa) thereof by s. 2, ibid. (w.e.f. 9-1-1997).
8. Subs. by Act 1 of 1984, s. 9, for clause (bb) (w.e.f. 15-2-1984).
9. Item (a) omitted by Act 53 of 2003, s. 12 and the Schedule (w.e.f. 2-7-2004).


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(c) any financial institution specified in or under section 6A of the Industrial

Development Bank of India Act, 1964 (18 of 1964), or

(d) any other institution that may be specified by the Bank in this behalf;


(v) amounts received in the ordinary course of business, by way of—


(a) security deposit,

(b) dealership deposit,


(c) earnest money, or


(d) advance against orders for goods, properties or services;

(vi) any amount received from an individual or a firm or an association of individuals not

being a body corporate, registered under any enactment relating to money lending which is for
the time being in force in any State; and


(vii) any amount received by way of subscriptions in respect of a chit.


_Explanation I.—“Chit” has the meaning assigned to it in clause (b) of section 2 of the Chit Funds Act,_

1982 (40 of 1982).

_Explanation II.—Any credit given by a seller to a buyer on the sale of any property (whether movable_

or immovable) shall not be deemed to be deposit for the purposes of this clause;]

1
[Explanation III. — The amounts accepted by a co-operative society from the members or

shareholders, by whatever name called, but excluding the amounts received as share capital, shall be
deemed to be deposits for the purposes of this clause, if such members or shareholders are nominal or
associate members, by whatever name called, who do not have full voting rights in the meetings of such
co-operative society.]

2[(c) “financial institution” means any non-banking institution which carries on as its business or

part of its business any of the following activities, namely:—

(i) the financing, whether by way of making loans or advances or otherwise, of any activity

other than its own;

(ii) the acquisition of shares, stock, bonds, debentures or securities issued by a Government

or local authority or other marketable securities of a like nature;

(iii) letting or delivering of any goods to a hirer under a hire-purchase agreement as defined

in clause (c) of section 2 of the Hire-Purchase Act, 1972 (26 of 1972);

(iv) the carrying on of any class of insurance business;

(v) managing, conducting or supervising, as foreman, agent or in any other capacity, of chits

or kuries as defined in any law which is for the time being in force in any State, or any business,
which is similar thereto;

(vi) collecting, for any purpose or under any scheme or arrangement by whatever name

called, monies in lump sum or otherwise, by way of subscriptions or by sale of units, or other
instruments or in any other manner and awarding prizes or gifts, whether in cash or king, or
disbursing monies in any other way, to persons from whom monies are collected or to any other
person,


3[but does not include any institution, which carries on as its principal business,—


(a) agricultural operations; or


(aa) industrial activity; or]


1. Ins. by Act 21 of 2019, s. 42 the second schedule (w.e.f. 21-2-2019).
2. Subs. by Act 51 of 1974, s. 17, for clause (c) (w.e.f. 13-12-1974).
3. Subs. by Act 23 of 1997, s. 2, for certain words (w.e.f. 9-1-1997).


-----

(b) the purchase, or sale of any goods (other than securities) or the providing of any services; or

(c) the purchase, construction or sale of immovable property, so, however, that no portion of the

income of the institution is derived from the financing of purchases, constructions or sales of immovable
property by other persons;]

1[Explanation.—For the purposes of this clause, “industrial activity” means any activity specified

in sub-clauses (i) to (xviii) of clause (c) of section 2 of the Industrial Development Bank of India Act,
1964 (18 of 1964);]

(d) “firm” means a firm as defined in the Indian Partnership Act, 1932 (9 of 1932) [2]***;

(e) “non-banking institution” means a company, corporation [3][or co-operative society];

1[(f) “non-banking financial company” means—

(i) a financial institution which is a company;

(ii) a non-banking institution which is a company and which has as its principal business the

receiving of deposits, under any scheme or arrangement or in any other manner, or lending in any
manner;

(iii) such other non-banking institution or class of such institutions, as the Bank may, with the

previous approval of the Central Government and by notification in the Official Gazette, specify.]

4
[45-IA. Requirement of registration and net owned fund.—(1) Notwithstanding anything

contained in this Chapter or in any other law for the time being in force, no non-banking financial
company shall commence or carry on the business of a non-banking financial institution without—

(a) obtaining a certificate of registration issued under this Chapter; and

5[(b) having the net owned fund of twenty-five lakh rupees or such other amount, not exceeding

hundred crore rupees, as the Bank may, by notification in the Official Gazette, specify:

Provided that the Bank may notify different amounts of net owned fund for different categories of

non-banking financial companies.]


(2) Every non-banking financial company shall make an application for registration to the Bank in

such form as the Bank may specify:

Provided that a non-banking financial company in existence on the commencement of the Reserve

Bank of India (Amendment) Act, 1997 (23 of 1997) shall make an application for registration to the Bank
before the expiry of six months from such commencement and notwithstanding anything contained in
sub-section (1) may continue to carry on the business of a non-banking financial institution until a
certificate of registration is issued to it or rejection of application for registration is communicated to it.

(3) Notwithstanding anything contained in sub-section (1), a non-banking financial company in

existence on the commencement of the Reserve Bank of India (Amendment) Act, 1997 (23 of 1997) and
having a net owned fund of less than twenty-five lakh rupees may, for the purpose of enabling such
company to fulfil the requirement of the net owned fund, continue to carry on the business of a nonbanking financial institution—

(i) for a period of there years from such commencement; or

(ii) for such further period as the Bank may, after recording the reasons in writing for so doing,

extend,

subject to the condition that such company shall, within three months of fulfilling the requirement of the
net owned fund, inform the Bank about such fulfillment:

1. Ins. by Act 23 of 1997, s. 2 (w.e.f. 9-1-1997).
2. The words “, of which the capital subscribed by its partners exceeds one lakh of rupees” omitted by Act 1 of 1984, s. 9

(w.e.f. 15-2-1984).

3. Subs. by s. 9, ibid., for “, co-operative society or firm” (w.e.f. 15-2-1984).
4. Ins. by Act 23 of 1997, s. 3 (w.e.f. 9-1-1997).
5. Subs. by Act 23 of 2019, s. 137, for clause (b) (w.e.f. 9-8-2019)


-----

Provided that the period allowed to continue business under this sub-section shall in no case exceed

six years in the aggregate.

(4) The Bank, for the purpose of considering the application for registration, may require to be

satisfied by an inspection of the books of the non-banking financial company or otherwise that the
following conditions are fulfilled:—

(a) that the non-banking financial company is or shall be in a position to pay its present or future

depositors in full as and when their claims accrue;

(b) that the affairs of the non-banking financial company are not being or are not likely to be

conducted in a manner detrimental to the interest of its present or future depositors;

(c) that the general character of the management or the proposed management of the non-banking

financial company shall not be prejudicial to the public interest or the interests of its depositors;

(d) that the non-banking financial company has adequate capital structure and earning prospects;

(e) that the public interest shall be served by the grant of certificate of registration to the non
banking financial company to commence or to carry on the business of India;


(f) that the grant of certificate of registration shall not be prejudicial to the operation and

consolidation of the financial sector consistent with monetary stability, and economic growth
considering such other relevant factors which the Bank may, by notification in the Official Gazette,
specify; and

(g) any other condition, fulfilment of which in the opinion of the Bank, shall be necessary to

ensure that the commencement of or carrying on of the business in India by a non-banking financial
company shall not be prejudicial to the public interest or in the interests of the depositors.

(5) The Bank may, after being satisfied that the conditions specified in subsection (4) are fulfilled,

grant a certificate of registration subject to such conditions which it may consider fit to impose.

(6) The Bank cancel a certificate of registration granted to a non-banking financial company under

this section if such company—

(i) ceases to carry on the business of a non-banking financial institution in India; or

(ii) has failed to comply with any condition subject to which the certificate of registration had

been issued to it; or

(iii) at any time fails to fulfil any of the conditions referred to in clauses (d) to (g) of sub-section

(4); or


(iv) fails—

(a) to comply with any direction issued by the Bank under the provisions of this Chapter; or

(b) to maintain accounts in accordance with the requirements of any law or any direction or

order issued by the Bank under the provisions of this Chapter; or

(c) to submit or offer for inspection its books of account and other relevant documents when

so demanded by an inspecting authority of the Bank; or

(v) has been prohibited from accepting deposit by an order made by the Bank under the

provisions of this Chapter and such order has been in force for a period of not less than three months:

Provided that before cancelling a certificate of registration on the ground that the non-banking

financial company has failed to company with the provisions of clause (ii) or has failed to fulfil any
of the conditions referred to in clause (iii) the Bank, unless it is of the opinion that the delay in
cancelling the certificate of registration shall be prejudicial to public interest or the interest of the
depositors or the non-banking financial company, shall give an opportunity to such company on such
term as the Bank may specify for taking necessary steps to comply with such provision or fulfilment
of such condition:

Provided further that before making any order of cancellation of certificate of registration, such

company shall be given a reasonable opportunity of being heard.


-----

(7) A company aggrieved by the order of rejection of application for registration or cancellation of

certificate of registration may prefer an Appeal, within a period of thirty days from the date on which
such order of rejection or cancellation is communicated to it, to the Central Government and the decision
of the Central Government where an appeal has been preferred to it, or of the Bank where no appeal has
been preferred, shall be final:

Provided that before making any order of rejection of appeal, such company shall be given a

reasonable opportunity of being heard.

_Explanations.—For the purposes of this section,—_


(I) “net owned fund” means—


(a) the aggregate of the paid-up equity capital and free reserves as disclosed in the latest

balance-sheet of the company after deducting there from—


(i) accumulated balance of loss;


(ii) deferred revenue expenditure; and


(iii) other intangible assets; and


(b) further reduced by the amounts representing—

(1) investments of such company in shares of—

(i) its subsidiaries;

(ii) companies in the same group;


(iii) all other non-banking financial companies; and


(2) the book value of debentures, bonds, outstanding loans and advances (including hire
purchase and lease finance) made to, and deposits with,—

(i) subsidiaries of such company; and

(ii) companies in the same group,


to the extent such book value exceeds ten per cent. of (a) above.


(II) “subsidiaries” and “companies in the same group” shall have the same meanings assigned to

them in the Companies Act, 1956, (1 of 1956).]

**45-IB. Maintenance of percentage of assets.—(1) Every non-banking financial company shall**

invest and continue to invest in India in unencumbered approved securities, valued at a price not
exceeding the current market price of such securities, an amount which, at the close of business on any
day, shall not be less than five per cent. or such higher percentage not exceeding twenty-five per cent. as
the Bank may, from time to time and by notification in the Official Gazette, specify, of the deposits
outstanding at the close of business on the last working day of the second preceding quarter:

Provided that the Bank may specify different percentages of investment in respect of different classes

of non-banking financial companies.

(2) For the purpose of ensuring compliance with the provisions of this section, the Bank may require

every non-banking financial company to furnish a return to it in such form, in such manner and for such
period as may be specified by the Bank.

(3) If the amount invested by a non-banking financial company at the close of business on any day

falls below the rate specified under sub-section (1), such company shall be liable to pay to the Bank, in
respect of such shortfall, a penal interest at a rate of three per cent.per annum above the bank rate on such
amount by which the amount actually invested falls short of the specified percentage, and where the
shortfall continues in the subsequent quarters, the rate of penal interest shall be five per cent.per annum
above the bank rate on such shortfall for each subsequent quarter.


-----

(4) (a) The penal interest payable under sub-section (3) shall be payable within a period of fourteen

days from the date on which a notice issued by the Bank demanding payment of the same is served on the
non-banking financial company and, in the event of a failure of the non-banking financial company to pay
the same within such period, penalty may be levied by a direction of the principal civil court having
jurisdiction in the area where an office of the defaulting non-banking financial company is situated and
such direction shall be made only upon an application made in this behalf to the court by the Bank; and

(b) when the court makes a direction under clause (a), it shall issue a certificate specifying the sum

payable by the non-banking financial company and every such certificate shall be enforceable in the same
manner as if it were a decree made by the court in a suit.

(5) Notwithstanding anything contained in this section, if the Bank is satisfied that the defaulting non
banking financial company had sufficient cause for its failure to comply with the provisions of subsection (1), it may not demand the payment of the penal interest.

_Explanation.—For the purpose of this section,—_

(i) “approved securities” means securities of any State Government or of the Central Government

and such bonds, both the principal whereof and the interest whereon shall have been fully and
unconditionally guaranteed by any such Government;

(ii) “unencumbered approved securities” includes the approved securities lodged by the non
banking financial company with another institution for an advance or any other arrangement to the
extent to which such securities have not been drawn against or availed of or encumbered in any
manner;

(iii) “quarter” means the period of three months ending on the last day of March, June, September

or December.

**45-IC. Reserve fund.—(1) Every non-banking financial company shall create a reserve fund the**

transfer therein a sum not less than twenty per cent.of its net profit every year as disclosed in the profit
and loss account and before any dividend is declared.

(2) No appropriation of any sum from the reserve fund shall be made by the non-banking financial

company except for the purpose as may be specified by the Bank from time to time and every such
appropriation shall be reported to the Bank within twenty-one days from the date of such withdrawal:

Provided that the Bank may, in any particular case and for sufficient cause being shown, extend the

period of twenty-one days by such further period as it thinks fit or condone any delay in making such
report.

(3) Notwithstanding anything contained in sub-section (1), the Central Government may, on the

recommendation of the Bank and having regard to the adequacy of the paid-up capital and reserves of a
non-banking financial company in relation to its deposit liabilities, declare by order in writing that the
provisions of sub-section (1) shall not be applicable to the non-banking financial company for such period
as may be specified in the order:

Provided that no such order shall be made unless the amount in the reserve fund under sub-section (1)

together with the amount in the share premium account is not less than the paid-up capital of the nonbanking financial company.]

1[45-ID. Power of Bank to remove directors from office.—(1) Where the Bank is satisfied that in

the public interest or to prevent the affairs of a non-banking financial company being conducted in a
manner detrimental to the interest of the depositors or creditors, or financial stability or for securing the
proper management of such company, it is necessary so to do, the Bank may, by order and for reasons to
be recorded in writing, remove from office, a director (by whatever name called) of such company, other
than Government owned non-banking financial company with effect from such date as may be specified
in the said order.

(2) No order under sub-section (1) shall be made unless the director concerned has been given a

reasonable opportunity of making a representation to the Bank against the proposed order:

1. Ins. by 23 of 2019, s. 138 (w.e.f. 9-8-2019).


-----

Provided that if, in the opinion of the Bank, any delay will be detrimental to the interest of the said

company or its depositors, the Bank may, at the time of giving the aforesaid opportunity or at any time
thereafter, by order direct that, pending the consideration of the representation, if any, the director, shall
not, with effect from the date of such order

(a) act as such director of that company;

(b) in any way, whether directly or indirectly, be concerned with or take part in the management of

that company.

(3) Where any order is made in respect of a director of a company under sub-section (1), he shall cease

to be a director of that non-banking financial company and shall not, in any way, whether directly or
indirectly, be concerned with, or take part in the management of any non-banking financial company for
such period not exceeding five years at a time as may be specified in the order.

(4) Where an order under sub-section (1) has been made, the Bank may, by order in writing, appoint a

suitable person in place of the director, who has been so removed from his office, with effect from such
date as may be specified in such order.

(5) Any person appointed under sub-section (4) shall, —

(a) hold office during the pleasure of the Bank and subject thereto for a period not exceeding three

years or such further periods not exceeding three years at a time;

(b) not incur any obligation or liability by reason only of his being a director for anything done or

omitted to be done in good faith in the execution of the duties of his office or in relation thereto.

(6) Notwithstanding anything contained in any other law for the time being in force or in any contract,

memorandum or articles of association, on the removal of a director from office under this section, such
director shall not be entitled to claim any compensation for the loss or termination from office.

**45-IE. Supersession of Board of directors of non-banking financial company (other than**

**Government Company).—(1) Where the Bank is satisfied that in the public interest or to prevent the**
affairs of a non-banking financial company being conducted in a manner detrimental to the interest of the
depositors or creditors, or of the non-banking financial company (other than Government Company), or
for securing the proper management of such company or for financial stability, it is necessary so to do,
the Bank may, for reasons to be recorded in writing, by order, supersede the Board of Directors of such
company for a period not exceeding five years as may be specified in the order, which may be extended
from time to time, so, however, that the total period shall not exceed five years.

(2) The Bank may, on supersession of the Board of Directors of the non-banking financial company

under sub-section (1), appoint a suitable person as the Administrator for such period as it may determine.

(3) The Bank may issue such directions to the Administrator as it may deem appropriate and the

Administrator shall be bound to follow such directions.

(4) Upon making the order of supersession of the Board of Directors of a non-banking financial

company, —

(a) the chairman, managing director and other directors shall from the date of super session of the

Board of Directors vacate their offices;

(b) all the powers, functions and duties, which may, by or under the provisions of this Act or any

other law for the time being in force, be exercised and discharged by or on behalf of the Board of
Directors of such non-banking financial company or by a resolution passed in general meeting of such


-----

non-banking financial company, shall, until the Board of Directors of such company is reconstituted,
be exercised and discharged by the Administrator referred to in sub-section (2).

(5) (a) The Bank may constitute a committee consisting of three or more members who have

experience in law, finance, banking, administration or accountancy to assist the Administrator in
discharge of his duties.

(b) The committee shall meet at such times and places and observe such rules of procedure as may

be specified by the Bank.

(6) The salary and allowances payable to the Administrator and the members of the committee

constituted by the Bank shall be such as may be specified by the Bank and be paid by the concerned nonbanking financial company.

(7) On or before the expiration of the period of super session of the Board of Directors as specified in

the order issued under sub-section (1), the Administrator of the non-banking financial company shall
facilitate reconstitution of the Board of Directors of the non-banking financial company.

(8) Notwithstanding anything contained in any other law for the time being in force or in any contract,

no person shall be entitled to claim any compensation for the loss or termination of his office.

(9) The Administrator referred to in sub-section (2) shall vacate office immediately after the Board of

Directors of the non-banking financial company has been reconstituted.]

**45J. Bank to regulate or prohibit issue of prospectus or advertisement soliciting deposits of**

**money.—The Bank may, if it consider necessary in the public interest so to do, by general or special**
order,—

(a) regulate or prohibit the issue by any non-banking institution of any prospectus or

advertisement soliciting deposits of money from the public, and

(b) specify the conditions subject to which any such prospectus or advertisement, if not

prohibited, may be issued.

1[45JA. Power of Bank to determine policy and issue directions.—(1) If the Bank is satisfied that,

in the public interest or to regulate the financial system of the country to its advantage or to prevent the
affairs of any non-banking financial company being conducted in manner detrimental to the interest of the
depositors or in a manner prejudicial to the interest of the non-banking financial company, it is necessary
or expedient so to do, it may determine the policy and give directions to all or any of the non-banking
financial companies relating to income recognition, accounting standards, making of proper provision for
bad and doubtful debts, capital adequacy based on risk weights for assets and credit conversion factors for
off balance-sheet items and also relating to deployment of funds by a non-banking financial company or a
class of non-banking financial companies or non-banking financial companies generally, as the case may
be, and such non-banking financial companies shall be bound to follow the policy so determined and the
direction so issued.

(2) Without prejudice to the generality of the powers vested under sub-section (1), the Bank may give

directions to non-banking financial companies generally or to a class of non banking financial companies
or to any non-banking financial company in particular as to—

(a) the purpose for which advances or other fund based or non-fund based accommodation may

not be made; and

(b) the maximum amount of advances of other financial accommodation or investment in shares

and other securities which, having regard to the paid-up capital, reserves and deposits of the nonbanking financial company and other relevant considerations, may be made by that non-banking
financial company to any person or a company or to a group of companies.]

1. Ins. by Act 23 of 1997, s. 4 (w.e.f. 9-1-1997).


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**45K. Power of Bank to collect information from non-banking institutions as to deposits and to**

**give directions.—(1) The Bank may at any time direct that every non-banking institution shall furnish to**
the Bank, in such form, at such intervals and within such time, such statements information or particulars
relating to or connected with deposits received by the non-banking institution, as may be specified by the
Bank by general or special order.

(2) Without prejudice to the generality of the power vested in the Bank under sub-section (1), the

statements, information or particulars to be furnished under sub-section (1), may relate to all or any of the
following matters, namely, the amount of the deposits, the purposes and periods for which, and the rates
of interest and other terms and conditions on which, they are received.

(3) The Bank may, if it considers necessary in the public interest so to do, give directions to non
banking institutions either generally or to any non-banking institution or group of non-banking
institutions in particular, in respect of any matters relating to or connected with the receipt of deposits,
including the rates of interest payable on such deposits, and the periods for which deposits may be
received.

(4) If any non-banking institution fails to comply with any direction given by the Bank under sub
section (3), the Bank may prohibit the acceptance of deposits by that non-banking institution.


1* - - - 

(6) Every non-banking institution receiving deposits shall, if so required by the Bank and within such

time as the Bank may specify, cause to be sent at the cost of the non-banking institution a copy of its
annual balance-sheet arid profit and loss account or other annual accounts to every person from whom the
non-banking institution holds, as on the last day of the year to which the accounts relate, deposits higher
than such sum as may be specified by the Bank.

**45L. Power of Bank to call for information from financial institutions and to give directions.—**

(1) If the Bank is satisfied for the purpose of enabling it to regulate the credit system of the country to its
advantage it is necessary so to do, it may—

(a) require financial institutions either generally or any group of financial institutions or financial

institution in particular, to furnish to the Bank in such form, at such intervals and within such time,
such statements, information or particulars relating to the business of such financial institutions or
institution, as may be specified by the Bank by general or special order;

(b) give to such institutions either generally or to any such institution in particular, directions

relating to the conduct of business by them or by it as financial institutions or institution.

(2) Without prejudice to the generality of the power vested in the Bank under clause (a) of sub
section (1), the statements, information or particulars to be furnished by a financial institution may relate
to all or any of the following matters, namely, the paid-up capital, reserves or other liabilities, the
investments whether in Government securities or otherwise, the persons to whom, and the purposes and
periods for which, finance is provided and the terms and conditions, including the rates of interest, on
which it is provided.

(3) In issuing directions to any financial institution under clause (b) of subsection (1), the Bank shall

have due regard to the conditions in which, and the objects for which, the institution has been established,
its statutory responsibilities, if any, and the effect the business of such financial institution is likely to
have on trends in the money and capital markets.

**45M. Duty of non-banking institutions to furnish statements, etc., required by Bank.—It shall be**

the duty or every non-banking institution to furnish the statements, information or particulars called for,
and to comply with any direction given to it, under the provisions of this Chapter.

1. Sub-section (5) omitted by Act 51 of 1974, s. 18 (w.e.f. 13-12-1974).


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1[45MA. Powers and duties of auditors.—(1) It shall be the duty of an auditor of a non-banking

institution to inquire whether or not the non-banking institution has furnished to the Bank such
statements, information or particulars relating to or connected with deposits received by it, as are required
to be furnished under this Chapter, and the auditor shall, except where he is satisfied on such inquiry that
the non-banking institution has furnished such statements, information or particulars, make a report to the
Bank giving the aggregate amount of such deposits held by the non-banking institution.

2[(1A) The Bank may, on being satisfied that it is necessary so to do, in the public interest or in the

interest of the depositors or for the purpose of proper assessment of the books of accounts, issue
directions to any non-banking financial company or any class of non-banking financial companies or nonbanking financial companies generally or to the auditors of such non-banking financial company or
companies relating to balance-sheet, profit and loss account, disclosure of liabilities in the books of
accounts or any matter relating thereto.]

(2) Where, in the case of [3][a non-banking financial company], the auditor has made, or intends to

make, a report to the Bank under sub-section (1), he shall include in his report under sub-section (2)
of section 227 of the Companies Act, 1956 (1 of 1956), the contents of the report which he has made or
intends to make, to the Bank.]

2[(3) Where the bank is of the opinion that it is necessary so to do in the public interest or in the

interest of the non-banking financial company or in the interest of depositors of such company it may at
any time by order direct that a special audit of the accounts of the non-banking financial company in
relation to any such transaction or class of transactions or for such period or periods, as may be specified
in the order, shall be conducted and the Bank may appoint an auditor or auditors to conduct such special
audit and direct the auditor or the auditors to submit the report to it.

(4) The remuneration of the auditors as may be fixed by the Bank, having regard to the nature and

volume of work involved in the audit and the expenses of or incidental to the audit, shall be borne by the
non-banking financial company so audited.]

4[45MAA. Power to take action against auditors. —Where any auditor fails to comply with any

direction given or order made by the Bank under section 45MA, the Bank, may, if satisfied, remove or
debar the auditor from exercising the duties as auditor of any of the Bank regulated entities for a
maximum period of three years, at a time.]

5[45MB. Power of Bank to prohibit acceptance of deposit and alienation of assets.—(1) If any

non-banking financial company violates the provisions of any section or fails to comply with any
direction or order given by the Bank under any of the provisions of this Chapter, the Bank may prohibit
the non-banking financial company from accepting any deposit.

(2) Notwithstanding anything to the contrary contained in any agreement or instruments or any law

for the time being in force, the Bank, on being satisfied that it is necessary so to do in the public interest
or in the interest of the depositors, may direct, the non-banking financial company against which an order
prohibiting from accepting deposit has been issued, not to sell, transfer, create charge or mortgage or deal

1. Ins. by Act 51 of 1974, s. 19 (w.e.f. 13-12-1974).
2. Ins. by Act 23 of 1997, s. 5 (w.e.f. 9-1-1997).
3. Subs. by s. 5, ibid., for “a non-banking institution, being a company” (w.e.f. 9-1-1997).
4. Ins. by Act 23 of 2019, s. 139 (w.e.f. 9-8-2019).
5. Ins. by Act 23 of 1997, s. 6. (w.e.f. 9-1-1997).


-----

in any manner with its property and assets without prior written permission of the Bank for such period
not exceeding six months from the date of the order.

1[45MBA. Resolution of non-banking financial company.—(1) Without prejudice to any other

provision of this Act or any other law for the time being in force, the Bank may, if it is satisfied, upon an
inspection of the Books of a non-banking financial company that it is in the public interest or in the
interest of financial stability so to do for enabling the continuance of the activities critical to the
functioning of the financial system, frame schemes which may provide for any one or more of the
following, namely: —


(a) amalgamation with any other non-banking institution;


(b) reconstruction of the non-banking financial company;

(c) splitting the non-banking financial company into different units or institutions and vesting viable

and non-viable businesses in separate units or institutions to preserve the continuity of the activities of
that non-banking financial company that are critical to the functioning of the financial system and for
such purpose establish institutions called “Bridge Institutions”.

_Explanation.— For the purposes of this sub-section, “Bridge Institutions” mean temporary_

institutional arrangement made under the scheme referred to in this sub-section, to preserve the continuity
of the activities of a non-banking financial company that are critical to the functioning of the financial
system.

(2) Without prejudice to the generality of the foregoing provisions, the scheme referred to in

sub-section (1) may provide for—

(a) reduction of the pay and allowances of the chief executive officer, managing director,

chairman or any officer in the senior management of the non-banking financial company;

(b) cancellation of all or some of the shares of the non-banking financial company held by the

chief executive officer, managing director, chairman or any officer in the senior management of the
non-banking financial company or their relatives;


(c) sale of any of the assets of the non-banking financial company.


(3) The chief executive officer, managing director, chairman or any officer in the senior management

of the non-banking financial company whose pay and allowances are reduced or the shareholders whose
shares are cancelled under the scheme shall not be entitled to any compensation.]

**45MC. Power of Bank to file winding up petition.—(1) The Bank, on being satisfied that a non-**

banking financial company—

(a) is unable to pay its debt; or

(b) has by virtue of the provisions of section 45-IA become disqualified to carry on the business

of a non-banking financial institution; or

(c) has been prohibited by the Bank from receiving deposit by an order and such order has been

in force for a period of not less than three months; or

(d) the continuance of the non-banking financial company is detrimental to the public interest or

to the interest of depositors of the company,

may file an application for winding up of such non-banking financial company under the Companies Act,
1956 (1 of 1956).

(2) A non-banking financial company shall be deemed to be unable to pay its debt if it has refused or

has failed to meet within five working days any lawful demand made at any to its offices or branches and
the Bank certifies in writing that such company is unable to pay its debt.

1. Ins. by Act 23 of 2019, s. 140 (w.e.f. 9-8-2019).


-----

(3) A copy of every application made by the Bank under sub-section (1) shall be sent to the Registrar

of Companies.

(4) All the provisions of the Companies Act, 1956 (1 of 1956) relating to winding up of a company

shall apply to a winding up proceeding initiated on the application made by the Bank under this
provision.]

**45N. Inspection.—[1][(1) The Bank may, at any time, cause an inspection to be made by one or more**

of its officers or employees or other persons (hereafter in this section referred to as the inspecting
authority)—

(i) of any non-banking institution, including a financial institution, for the purposes of verifying

the correctness or completeness of any statement, information or particulars furnished to the Bank or
for the purpose of obtaining any information or particulars which the non-banking institution has
failed to furnish on being called upon to do so; or

(ii) of any non-banking institution being a financial institution, if the Bank considers it necessary

or expedient to inspect that institution.]

(2) It shall be the duly of every director or member of any committee or other body for the time being

vested with the management of the affairs of the non-banking institution or other officer or employee
thereof to produce to the inspecting authority all such books, accounts and other documents in his custody
or power and to furnish that authority with any statements and information relating to the business of the
institution as that authority may require of him, within such time as may be specified by that authority.

(3) The inspecting authority may examine on oath any director or member of any committee or body

for the time being vested with the management of the affairs of the non-banking institution or other
officer or employee thereof, in relation to its business and may administer an oath accordingly.

2[45NA. Deposits not to be solicited by unauthorised person.—No person shall solicit on behalf of

any non-banking institution either by publishing or causing to be published any prospectus or
advertisement or in any other manner deposits of money from the public unless—

(a) he has been authorised in writing by the said non-banking institution to do so and specifies the

name of the institution which has so authorised him, and

(b) the prospectus or advertisement complies with any order made by the Bank under section 45J

and with any other provision of law for the time being in force, applicable to the publication of such
prospectus or advertisement.]

3[45NAA. Power in respect of group companies. —(1) The Bank may, at any time, direct a non
banking financial company to annex to its financial statements or furnish separately, within such time and
at such intervals as may be specified by the Bank, such statements and information relating to the
business or affairs of any group company of the non-banking financial company as the Bank may
consider necessary or expedient to obtain for the purposes of this Act.

(2) Notwithstanding anything to the contrary contained in the Companies Act, 2013 (18 of 2013), the

Bank may, at any time, cause an inspection or audit to be made of any group company of a non-banking
financial company and its books of account.

_Explanation. — For the purposes of this section, —_

(a) “group company” shall mean an arrangement involving two or more entities related to each

other through any of the following relationships, namely: —

(i) subsidiary—parent (as may be notified by the Bank in accordance with Accounting

Standards);

(ii) joint venture (as may be notified by the Bank in accordance with Accounting Standards);

1. Subs. by Act 51 of 1974, s. 20, for sub-section (1) (w.e.f. 13-12-1974).
2. Ins. by s. 21, ibid. (w.e.f. 13-12-1974).
3. Ins. by Act 23 of 2019, s. 141 (w.e.f. 9-8-2019).


-----

(iii) associate (as may be notified by the Bank in accordance with Accounting Standards);

(iv) promoter-promotee (under the Securities and Exchange Board of India Act, 1992 (15 of

1992) or the rules or regulations made there under for listed companies);

(v) related party;

(vi) common brand name (that is usage of a registered brand name of an entity by another

entity for business purposes); and


(vii) investment in equity shares of twenty per cent. and above in the entity;


(b) “Accounting Standards” means the Accounting Standards notified by the Central

Government under section 133, read with section 469 of the Companies Act, 2013 (18 of 2013) and
sub-section (1) of section 210A of the Companies Act, 1956 (1 of 1956).]

1 [45NB. Disclosure of information.—(1) Any information relating to a non-banking financial

company,—

(i) contained in any statement or return submitted by such company under the provisions of this

chapter; or


(ii) obtained through audit or inspection or otherwise by the Bank,


shall be treated as confidential and shall not, except otherwise provided in this section, be disclosed.


(2) Nothing in this section shall apply to—

(a) the disclosure by any non-banking financial company, with the previous permission of the

Bank, of any information furnished to the Bank under sub-section (1);

(b) the publication by the Bank, if it considers necessary in the public interest so to do, of any

information collected by it under sub-section (1) in such consolidated form as it may think fit without
disclosing the name of any non-banking financial company or its borrowers;

(c) the disclosure or publication by the non-banking financial company or by the Bank of any

such information to any other non-banking financial company or in accordance with the practice and
usage customary amongst such companies or as permitted or required under any other law:

Provided that any such information received by a non-banking financial company under this

clause shall not be published except in accordance with the practice and usage customary amongst
companies or as permitted or required under any other law.

(3) Notwithstanding anything contained in this Act or in any other law for the time being in force, the

Bank, if it is satisfied that, in the public interest or in the interest of the depositors or the non-banking
financial company or to prevent the affairs of any non-banking financial company being conducted in a
manner detrimental to the interest of the depositors, it is expedient so to do, may, either on its own motion
or on being requested, furnish or communicate any information relating to the conduct of business by any
non-banking financial company to any authority constituted under any law.

(4) Notwithstanding anything contained in any law for the time being in force, no court or tribunal or

other authority shall compel the Bank to produce or to give inspection of any statement or other material
obtained by the Bank under any provisions of this chapter.]

**45NC. Power of Bank to exempt.—The Bank, on being satisfied that it is necessary so to do, may**

declare by notification in the Official Gazette that any or all of the provisions of this Chapter shall not
apply to a non-banking institution or a class of non-banking institutions or a non-banking financial
company or to any class or non-banking financial companies either generally or for such period as may be
specified, subject to such conditions, limitations or restrictions as it may think fit to impose.]

**45-O.** [Penalties].—Omitted by the Reserve Bank of India (Amendment) _Act, 1974, (51_ _of 1974),_

_s. 22 (w.e.f. 13-12-1974)._

**45P. [Cognizance of offence].—Omitted by s. 22, ibid. (w.e.f. 13-12-1974)**

1. Ins. by Act 23 of 1997, s. 7 (w.e.f. 9-1-1997).


-----

**45Q. Chapter IIIB to override other laws.—The provisions of this Chapter shall have effect**

notwithstanding anything inconsistent therewith contained in any other law for the time being in force or
any instrument having effect by virtue of any such law.]

1[45QA. Power of Company Law Board to offer repayment of deposit.—(1) Every deposit

accepted by a non-banking financial company, unless renewed, shall be repaid in accordance with the
terms and condition of such deposit.

(2) Where a non-banking financial company has failed to repay and deposit or part thereof in

accordance with the terms and conditions of such deposit, the Company Law Board constituted
under section 10E of the Companies Act, 1956 (1 of 1956), may, if it is satisfied, either on its own motion
or on an application of the depositor, that it is necessary so to do to safeguard the interests of the
company, the depositors or in the public interest, direct, by order, the non-banking financial company to
make repayment of such deposit or part thereof forthwith or within such time and subject to such
conditions as may be specified in the order:

Provided that the Company Law Board may, before making any order under this sub-section, give a

reasonable opportunity of being heard to the non-banking financial company and the other persons
interested in the matter.

**45QB. Nomination by depositors.—(1) Where a deposit is held by a non-banking financial**

institution to the credit of one or more persons, the depositor or, as the case may be, all the depositors
together may nominate, in the manner prescribed by rules made by the Central Government under section
45ZA of the Banking Regulation Act, 1949 (10 of 1949), one person to whom in the event of the death of
the sole depositor or the death of all the depositors, the amount of deposit may be returned by the nonbanking financial institution.

(2) Notwithstanding anything contained in any other law for the time being in force, or in any

disposition, whether testamentary or otherwise, in respect of such deposit, where a nomination made
purports to confer on any person the right to receive the amount of deposit from the non-banking financial
institution, the nominee shall, on the death of the sole depositor or, as the case may be, on the death of all
the depositors, become entitled to all the rights of the sole depositor or, as the case may be, of the
depositors, in relation to such deposit to the exclusion of all other persons, unless the nomination is varied
or cancelled in the manner prescribed by rules made by the Central Government under section 45ZA of
the Banking Regulation Act, 1949 (10 of 1949).

(3) Where the nominee is a minor, it shall be lawful for the depositor making the nomination to

appoint, in the manner prescribed by rules made by the Central Government under section 45ZA of the
Banking Regulation Act, 1949 (10 of 1949), any person to receive the amount of deposit in the event of
his death during the minority of the nominee.

(4) Payment by a non-banking institution in accordance with the provisions of this section shall

constitute a full discharge to the non-banking institution of its liability in respect of the deposit:

Provided that nothing contained in this sub-section shall effect the right or claim which any person

may have against the person to whom any payment is made under this section.

(5) No notice of the claim of any person, other than the person or persons in whose name a deposit is

held by a non-banking institution, shall be receivable by the non-banking institution, nor shall the nonbanking institution be bound by any such notice even though expressly given to it:

Provided that where any decree order, certificate or other authority from a court of competent

jurisdiction relating to such deposit is produced before a non-banking institution, the non-banking
institution shall take due note of such decree, order, certificate or other authority.]

1. Ins. by Act 23 of 1997, s. 8 (w.e.f. 9-1-1997).


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1[CHAPTER IIIC


PROHINITION OF ACCEPTANCE OF DEPOSITS BY UNINCORPORATED BODIES


**45R. Interpretation.—The words and expressions used in this Chapter and defined in Chapter IIIB**

shall have the meanings respectively assigned to them therein.

2[45S. Deposits not to be accepted in certain cases.—(1) No person, being an individual or a firm

or an unincorporated association of individuals shall, accept any deposit—

(i) if his or its business wholly or partly includes any of the activities specified in clause (c) of

section 45-1; or

(ii) if his or its principal business is that of receiving of deposits under any scheme or

arrangement or in any other manner or lending in any manner:


Provided that nothing contained in this sub-section shall apply to the receipt of money by an

individual by way of loan from any of his relatives or to the receipt of money by a firm by way of
loan from the relative or relatives of any of the partners.

(2) Where any person referred to in sub-section (1) holds any deposit on the 1st day of April, 1997

which is not in accordance with sub-section (1), such deposit shall be repaid by that person immediately
after such deposit becomes due for repayment or within three years from the date of such commencement,
whichever is earlier:

Provided that if the Bank is satisfied on an application made by any person to the Bank that such

person is unable to repay a part of the deposits for reasons beyond his control or such repayment shall
cause extreme hardship to him, it may, by an order in writing, extend such period by a period not
exceeding one year subject to such conditions as may be specified in the order.

(3) on and from the date of 1st day of April, 1997, no person referred to in sub-section (1) shall issue

or cause to be issued any advertisement in any form for soliciting deposit.

_Explanation.—For the purposes of this section, a person shall be deemed to be a relative of another_

if, and only if,—

(i) they are members of a Hindu undivided family; or

(ii) they are husband and wife; or


(iii) the one is related to the other in the manner indicated in the List of Relatives below:—


_List of Relatives_


1. Father, 2. Mother (including step-mother), 3.Son (including stepson), 4. Son’s wife,
5. Daughter (including step-daughter), 6. Father’s father, 7. Father’s mother,
8. Mother’s mother, 9. Mother’s father, 10. Son’s son, 11. Son’s son’s wife, 12. Son’s
Daughter 13. Son’s Daughter’s husband, 14. Daughter’s husband, 15. Daughter’s son,
16. Daughter’s son’s wife, 17. Daughter’s daughter, 18. Daughter’s daughter’s
husband. 19. Brother (including step-brother), 20. Brother’s wife, 21. Sister (including
step-sister), 22. Sister’s husband].

**45T. Power to issue search warrants.—(1) Any court having jurisdiction to issue a search warrant**

under the Code of Criminal Procedure, 1973 (2 of 1974), may, on an application by an officer of the bank
or of the State Government authorised in this behalf stating his belief that certain documents relating to
acceptance of deposits in contravention of the provisions of section 45S are secreted in any place within
the local limits of the jurisdiction of such court, issue a warrant to search for such documents.

(2) A warrant issued under sub-section (1) shall be executed in the same manner and shall have the

same effect as a search warrant issued under the Code of Criminal Procedure, 1973 (2 of 1974).]

1. Ins. by Act 1 of 1984, s. 10 (w.e.f. 15-2-1984).
2. Subs. by Act 23 of 1997, s. 9, for section 45S (w.e.f. 1-4-1997).


-----

1[CHAPTER IIID


REGULATION OF TRANSACTIONS IN DERIVATIVES, MONEY MARKET INSTRUMENTS, SECURITIES, ETC.


**45U. Definitions.—For the purposes of this Chapter,—**

(a) “derivative” means an instrument, to be settled at a future date, whose value is derived from

change in interest rate, foreign exchange rate, credit rating or credit index, price of securities (also
called “underlying”), or a combination of more than one of them and includes interest rate swaps,
forward rate agreements, foreign currency swaps, foreign currency-rupee swaps, foreign currency
options, foreign currency-rupee options or such other instruments as may be specified by the Bank
from time to time;

(b) “money market instruments” include call or notice money, term money, repo, reverse repo,

certificate of deposit, commercial usance bill, commercial paper and such other debt instrument of
original or initial maturity up to one year as the Bank may specify from time to time;

(c) “repo” means an instrument for borrowing funds by selling securities with an agreement to

repurchase the securities on a mutually agreed future date at an agreed price which includes interest
for the funds borrowed;

(d) “reverse repo” means an instrument for lending funds by purchasing securities with an

agreement to resell the securities on a mutually agreed future date at an agreed price which includes
interest for the funds lent;

(e) “securities” means securities of the Central Government or a State Government or such

securities of a local authority as may be specified in this behalf by the Central Government and, for
the purposes of “repo” or “reverse repo”, include corporate bonds and debentures.

**45V. Transactions in derivatives.—(1) Notwithstanding anything contained in the Securities**

Contracts (Regulation) Act, 1956(42 of 1956) or any other law for the time being in force, transactions in
such derivatives, as may be specified by the Bank from time to time, shall be valid, if at least one of the
parties to the transaction is the Bank, a scheduled bank, or such other agency falling under the regulatory
purview of the Bank under the Act, the Banking Regulation Act, 1949(10 of 1949), the Foreign Exchange
Management Act, 1999(42 of 1999), or any other Act or instrument having the force of law, as may be
specified by the Bank from time to time.

(2) Transactions in such derivatives, as had been specified by the Bank from time to time, shall be

deemed always to have been valid, as if the provisions of sub-section (1) were in force at all material
times.

**45W. Power to regulate transactions in derivatives, money market instruments, etc.—(1) The**

Bank may, in public interest, or to regulate the financial system of the country to its advantage, determine
the policy relating to interest rates or interest rate products and give directions in that behalf to all
agencies or any of them, dealing in securities, money market instruments, foreign exchange, derivatives,
or other instruments of like nature as the Bank may specify from time to time:

Provided that the directions issued under this sub-section shall not relate to the procedure for

execution or settlement of the trades in respect of the transactions mentioned therein, on the Stock
Exchanges recognised under section 4 of the Securities Contracts (Regulation) Act, 1956(42 of 1956).

(2) The Bank may, for the purpose of enabling it to regulate agencies referred to in sub-section (1),

call for any information, statement or other particulars from them, or cause an inspection of such agencies
to be made.

**45X. Duty to comply with directions and furnish information.—It shall be the duty of every**

director or member or other body for the time being vested with the management of the affairs of the
agencies referred to in section 45W to comply with the directions given by the Bank and to submit the
information or statement or particulars called for under that section.]

1. Ins. by Act 26 of 2006, s. 4 (w.e.f. 9-1-2007).


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1[CHAPTER IIIE

JOINT MECHANISM

**45Y. Joint Mechanism.—(1) Notwithstanding anything contained in this Act or the Securities and**

Exchange Board of India Act, 1992(15 of 1992) or any other law for the time being in force, if any
difference of opinion arises as to whether—

(i) any instrument, being derivative referred to in clause (a) or money market instrument referred

to in clause (b) or repo referred to in clause (c) or reverse repo referred to in clause (d) or securities
referred to in clause (e) of section 45U of this Act; or

(ii) any instrument, being policy of life insurance under the Insurance Act, 1938(4 of 1938), or

the rules or regulations made thereunder, or, scrips or any other securities referred to in sub-clauses
(i), (ia), (ib), (ic), (id), (ie), (ii), (iia) and (iii) of clause (h) of section 2 of the Securities Contracts
(Regulation) Act, 1956(42 of 1956),

is hybrid or composite instrument, having a component of money market investment or securities market
instrument or a component of insurance or any other instrument referred to in clause (i) or clause (ii) and
falls within the jurisdiction of the Reserve Bank of India or the Securities and Exchange Board of India
established under section 3 of the Securities and Exchange Board of India Act, 1992(15 of 1992) or the
Insurance Regulatory and Development Authority established under section 3 of the Insurance Regulatory
and Development Authority Act, 1999(41 of 1999) or the Pension Fund Regulatory and Development
Authority constituted by the Resolution of the Government of India number F.No. 1(6)2007-PR, dated the
14th November, 2008, such difference of opinion shall be referred to a Joint Committee consisting of the
following, namely:—

(a) the Union Finance Minister—ex officio Chairperson;

(b) the Governor, Reserve Bank of India—ex officio Vice-Chairperson;

(c) the Secretary, Department of Economic Affairs in the Ministry of Finance, Government of

India—ex officio Member;

(d) the Secretary, Department of Financial Services in the Ministry of Finance, Government of

India—ex officio Member;

(e) the Chairperson, Insurance Regulatory and Development Authority—ex officio Member;


(f) the Chairman, Securities and Exchange Board of India—ex officio Member;


(g) the Chairperson, Pension Fund Regulatory and Development Authority—ex officio Member.

(2) The Secretary, Department of Financial Services in the Ministry of Finance, Government of India

shall be the convener of the meetings of the Joint Committee referred to in sub-section (1).

(3) In case of any difference of opinion referred to in sub-section (1), any Member of the Joint

Committee referred to in clauses (b), (e), (f) or (g) of that sub-section may make a reference to the Joint
Committee.

(4) The Joint Committee shall follow such procedure as it may consider expedient and give, within a

period of three months from the date of reference made under sub-section (3), its decisions thereon to the
Central Government.

(5) The decision of the Joint Committee shall be binding on the Reserve Bank of India, the Securities

and Exchange Board of India, the Insurance Regulatory and Development Authority and the Pension
Fund Regulatory and Development Authority.]

1. Ins. by Act 26 of 2010, s. 2 (w.e.f. 18-6-2010).


-----

1[CHAPTER IIIF


MONETARY POLICY


**45Z. Provisions of this Chapter to override other provisions of Act.—The provisions of this**

Chapter shall have effect, notwithstanding anything inconsistent therewith contained in any other
provisions of this Act.

**45ZA. Inflation target.—(1) The Central Government shall, in consultation with the Bank,**

determine the inflation target in terms of the Consumer Price Index, once in every five years.

(2) The Central Government shall, upon such determination, notify the inflation target in the Official

Gazette.

**45ZB. Constitution of Monetary Policy Committee.—(1) The Central Government may, by**

notification in the Official Gazette, constitute a Committee to be called the Monetary Policy Committee
of the Bank.

(2) The Monetary Policy Committee shall consist of the following Members, namely:—


(a) the Governor of the Bank—Chairperson, ex officio;


(b) Deputy Governor of the Bank, in charge of Monetary Policy—Member, ex officio;


(c) one officer of the Bank to be nominated by the Central Board—Member, ex officio; and


(d) three persons to be appointed by the Central Government—Members.

(3) The Monetary Policy Committee shall determine the Policy Rate required to achieve the inflation

target.

(4) The decision of the Monetary Policy Committee shall be binding on the Bank.

**45ZC. Eligibility and selection of Members appointed by Central Government.—(1) The**

Members of the Monetary Policy Committee referred to in clause (d) of sub-section (2) of section 45ZB
shall be appointed by the Central Government from amongst persons of ability, integrity and standing,
having knowledge and experience in the field of economics or banking or finance or monetary policy:


Provided that no person shall be appointed as a Member, in case such person—


(i) has completed the age of seventy years on the date of appointment as Member;


(ii) is a Member of any Board or Committee of the Bank;

(iii) is an employee of the Bank;


(iv) is a public servant as defined under section 21 of the Indian Penal Code (45 of 1860);


(v) is a Member of Parliament or any State Legislature;


(vi) has been at any time, adjudged as an insolvent;


(vii) has been convicted of an offence which is punishable with an imprisonment for a term of one

hundred and eighty days or more;

(viii) is physically or mentally incapable of discharging the duties of a Member of the Monetary

Policy Committee; or


(ix) has a material conflict of interest with the Bank and is unable to resolve such conflict.


(2) The Members of the Monetary Policy Committee referred to in clause (d) of sub-section (2) of

section 45ZB shall be appointed by the Central Government on the recommendations made by Searchcum-Selection Committee consisting of the following members, namely:—

(a) Cabinet Secretary—Chairperson;

1. Ins. by Act 28 of 2016, s. 222 (w.e.f. 27-6-2016).


-----

(b) Governor of the Reserve Bank of India or his representative (not below the rank of Deputy

Governor)—member;

(c) Secretary, Department of Economic Affairs—member;

(d) three experts in the field of economics or banking or finance or Monetary policy to be

nominated by the Central Government—members.

(3) While selecting the Members of the Monetary Policy Committee, the Search-cum-Selection

Committee shall follow such procedure as may be prescribed by the Central Government.

**45ZD. Terms and conditions of appointment of Members of Monetary Policy Committee.—(1)**

The Members of the Monetary Policy Committee appointed under clause (d) of sub-section (2) of section
45ZB shall hold office for a period of four years and shall not be eligible for re-appointment.

(2) The terms and conditions of appointment of Members of the Monetary Policy Committee shall be

such as may be prescribed by the Central Government and the remuneration and other allowances payable
to such Members shall be such as may be specified by the regulations made by the Central Board.

(3) A Member may resign from the Monetary Policy Committee, at any time before the expiry of his

tenure under sub-section (1), by giving to the Central Government, a written notice of not less than six
weeks, and on the acceptance of the resignation by the Central Government, he shall cease to be a
Member of the Monetary Policy Committee.

**45ZE. Removal of Members of Monetary Policy Committee.—(1) The Central Government may**

remove from office any Member of the Monetary Policy Committee appointed under clause (d) of subsection (2) of section 45ZB, who—


(a) is, or at any time has been, adjudged as an insolvent; or


(b) has become physically or mentally incapable of acting as a Member; or

(c) has been convicted of an offence which, in the opinion of the Central Government, involves

moral turpitude; or

(d) has failed to adequately disclose any material conflict of interest at the time of his

appointment; or

(e) does not attend three consecutive meetings of the Monetary Policy Committee without

obtaining prior leave; or

(f) has acquired such financial or other interest as is likely to affect prejudicially his functions as a

Member; or

(g) has acquired any post referred to in clauses (ii), (iii), (iv) and clause (v) of the proviso to sub

section (1) of section 45ZC; or

(h) has, in the opinion of the Central Government, so abused his position as to render his

continuance in office detrimental to the public interest.


(2) No Member appointed under clause (d) of sub-section (2) of section 45ZB shall be removed under

clause (d) or clause (e) or clause (f) or clause (g) or clause (h) of sub-section (1) unless he has been given
a reasonable opportunity of being heard in the matter.

**45ZF. Vacancies, etc., not to invalidate proceedings of Monetary Policy Committee.—No act or**

proceeding of the Monetary Policy Committee shall be invalid merely by reason of—

(a) any vacancy in, or any defect in the constitution of the Monetary Policy Committee; or

(b) any defect in the appointment of a person acting as a Member of the Monetary Policy

Committee; or

(c) any irregularity in the procedure of the Monetary Policy Committee not affecting the merits of

the case.


-----

**45ZG. Secretary to Monetary Policy Committee.—(1) The Bank shall appoint a Secretary to the**

Monetary Policy Committee to provide secretariat support to the said Committee.

(2) The Secretary shall perform such functions and in such manner as may be specified by the

regulations made by the Central Board.

**45ZH. Information for Monetary Policy Committee Members.—(1) The Bank shall provide all**

information to the Members of the Monetary Policy Committee that may be relevant to achieve the
inflation target.

(2) In addition to information provided by the Bank under sub-section (1), any Member of the

Monetary Policy Committee may, at any time, request the Bank for additional information, including any
data, models or analysis.

(3) The Bank shall provide the information, as referred to in sub-section (2), to the Member of the

Monetary Policy Committee, within reasonable time, unless—

(a) the information pertains to an entity or person and is not publicly available; or

(b) the information allows an entity or person to be identified and the information is not publicly

available.


(4) Any information provided by the Bank to a Member of the Monetary Policy Committee shall be

provided to all the Members of the Monetary Policy Committee.

**45Z-I. Meetings of Monetary Policy Committee.—(1) The Bank shall organise at least four**

meetings of the Monetary Policy Committee in a year.

(2) The meeting schedule of the Monetary Policy Committee for a year shall be published by the

Bank at least one week before the first meeting in that year.

(3) The meeting schedule may be changed only—

(a) by way of a decision taken at a prior meeting of the Monetary Policy Committee; or

(b) if, in the opinion of the Governor, an additional meeting is required or a meeting is required to

be rescheduled due to administrative exigencies.


(4) Any change in meeting schedule shall be published by the Bank as soon as practicable.

(5) The quorum for a meeting of the Monetary Policy Committee shall be four Members, at least one

of whom shall be the Governor and in his absence, the Deputy Governor who is the Member of the
Monetary Policy Committee.

(6) The meetings of the Monetary Policy Committee shall be presided over by the Governor, and in

his absence by the Deputy Governor who is a Member of the Monetary Policy Committee.

(7) Each Member of the Monetary Policy Committee shall have one vote.

(8) All questions which come up before any meeting of the Monetary Policy Committee shall be

decided by a majority of votes by the Members present and voting, and in the event of an equality of
votes, the Governor shall have a second or casting vote.

(9) The Central Government may, if it considers necessary, convey its views in writing to the

Monetary Policy Committee from time to time.

(10) The vote of each Member of the Monetary Policy Committee for a proposed resolution shall be

recorded against such Member.

(11) Each Member of the Monetary Policy Committee shall write a statement specifying the reasons

for voting in favour of, or against the proposed resolution.

duct, code of confidentiality and any other incidental matter for the functioning of the Monetary

Policy Committee shall be such as may be specified by the regulations made by the Central Board.


-----

(13) The proceeding of the Monetary Policy Committee shall be confidential.

**45ZJ. Steps to be taken to implement decision of Monetary Policy Committee.—(1) The Bank**

shall publish a document explaining the steps to be taken by it to implement the decisions of the
Monetary Policy Committee, including any changes thereto.

(2) The particulars to be included in such document and the frequency of publications of such

document shall be such as may be specified by the regulations made by the Central Board.

**45ZK. Publication of decisions.—The Bank shall publish, after the conclusion of every meeting of**

the Monetary Policy Committee, the resolution adopted by the said Committee;

**45ZL. Publication of proceedings of meeting of Monetary Policy Committee.—The Bank shall**

publish, on the fourteenth day after every meeting of the Monetary Policy Committee, the minutes of the
proceedings of the meeting which shall include the following, namely:—

(a) the resolution adopted at the meeting of the Monetary Policy Committee;

(b) the vote of each member of the Monetary Policy Committee, ascribed to such member, on

resolutions adopted in the said meeting; and

(c) the statement of each member of the Monetary Policy Committee under sub-section (11) of

section 45ZL on the resolutions adopted in the said meeting.


**45ZM. Monetary Policy Report.—(1) The Bank shall, once in every six months, publish a**

document to be called the Monetary Policy Report, explaining—

(a) the sources of inflation; and

(b) the forecasts of inflation for the period between six to eighteen months from the date of

publication of the document.


(2) The form and contents of the Monetary Policy Report shall be such as may be specified by the

regulations made by the Central Board.

**45ZN. Failure to maintain inflation target.—Where the Bank fails to meet the inflation target, it**

shall set out in a report to the Central Government—

(a) the reasons for failure to achieve the inflation target;

(b) remedial actions proposed to be taken by the Bank; and

(c) an estimate of the time-period within which the inflation target shall be achieved pursuant to

timely implementation of proposed remedial actions.

_Explanation.—For the purposes of this section, the factors that constitute failure shall be such as may_

be notified by the Central Government in the Official Gazette, within three months from the date of the
commencement of Part I of Chapter XII of the Finance Act, 2016.

**45ZO. Power to make rules.—(1) The Central Government may, by notification in the Official**

Gazette, make rules for the purpose of carrying out the provisions of this Chapter.

(2) In particular and without prejudice to the generality of the foregoing power, such rules may

provide for—

(a) the procedure of functioning of the Search-cum-Selection Committee under sub-section (3) of

section 45ZC;

(b) the terms and conditions of appointment, (other than the remuneration and other allowances),

of Members of the Monetary Policy Committee under sub-section (2) of section 45ZD; and


(c) any other matter which is to be, or may be, prescribed by the Central Government by rules.]


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CHAPTER IV


GENERAL PROVISIONS


**46. Contribution by Central Government to the Reserve Fund.—The [1][Central Government]**

shall transfer to the Bank rupee securities to the value of five crores of rupees to be allocated by the Bank
to the Reserve Fund.

2[46A. Contribution to National Rural Credit (Long Term Operations) Fund and National

**Rural Credit (Stabilisation) Fund.—The Bank shall contribute every year such sums of money as it**
may consider necessary and feasible to do so, to the National Rural Credit (Long Term Operations) Fund
and the National Rural Credit (Stabilisation) Fund established and maintained by the National Bank under
sections 42 and 43, respectively, of the National Bank for Agriculture and Rural Development Act, 1981
(61 of 1981).]

3[46C. National Industrial Credit (Long Term Operations) Fund.—(1) The Bank shall establish

and maintain a Fund to be known as the National Industrial Credit (Long Term Operations) Fund to
which shall be credited—

(a) an initial sum of ten crores of rupees by the Bank;
(b) such further sums of money as the Bank may contribute every year:
Provided that the annual contribution during each of the five years commencing with the year

ending on the 30th day of June, 1965 shall not be less than five crores of rupees:

Provided further that the Central Government may, if the circumstances so require, authorise the

Bank to reduce the said sum of five crores of rupees in any year.
(2) The amount in the said fund shall be applied by the Bank only to the following objects, namely:—

4*     -     -     - *]

5[(c) the making to the Exim Bank 6[or the Reconstruction Bank 7[or the Small Industries Bank

8
[or the National Bank for Financing Infrastructure and Development or the other
# development financial institution]], as the case may be] of loans and advances for the purposes of
any business of the Exim Bank [6][or the Reconstruction Bank [7][or the Small Industries Bank [8][or the
# National Bank for Financing Infrastructure and Development or the other development financial institution,]] as the case may be];

(d) the purchasing of bonds and debentures issued by the Exim Bank [6][or the Reconstruction

Bank [7][or the Small Industries Bank [8][or the National Bank for Financing Infrastructure and
# Development or the other development financial institution,]] as the case may be].]
9[46D. National Housing Credit (Long Term Operations) Fund.—(1) The Bank shall establish and

maintain a Fund to be known as the National Housing Credit (Long Term Operations) Fund to which
shall be credited every year such sums of money as it may consider necessary.

(2) The amount in the said Fund shall be applied by the Bank only to the following objects namely:—

(a) the making to the National Housing Bank of loans and advances for the purpose of any

business of the National Housing Bank;


(b) the purchasing of bonds and debentures issued by the National Housing Bank.]

10
[47. Allocation of surplus profits.—After making provision for bad and doubtful debts,

depreciation in assets, contributions to staff and superannuation fund [11][and for all other matters for which
provision is to be made by or under this Act or which] are usually provided for by bankers, the balance, of
the profits shall be paid to the Central Government.]

1. Subs. by the M.O. 1937, for “G.G. in C.”.
2. Subs. by Act 61 of 1981, s. 61 and the Second Schedule, for sections 46A and 46B (w.e.f. 12-7-1982). Earlier these

sections were inserted by Act 24 of 1955, s. 7 (w.e.f. 8-5-1955).

3. Ins. by Act 18 of 1964, s. 38 and the Second Schedule (w.e.f. 1-7-1964).
4. Clauses (a) and (b) omitted by Act 53 of 2003, s. 12 and the Schedule (w.e.f. 2-7-2004).
5. Ins. by Act 28 of 1981, s. 40 and the Second Schedule (w.e.f. 1-1-1982).
6. Ins. by Act 62 of 1984, s. 71 and the Third Schedule (w.e.f. 20-3-1985).
7. Ins. by Act 39 of 1989, s. 53 and the Second Schedule (w.e.f. 7-3-1990).
8.Ins. by Act 17 of 2021, s. 47 and the second schedule (w.e.f. 19-4-2021).
9. Ins. by Act 53 of 1987, s. 56 and the Second Schedule (w.e.f. 9-7-1988).
9. Subs. by Act 62 of 1948, s. 7 and the Schedule, for section 47 (w.e.f. 1-1-1949).
10. Subs. by Act 24 of 1955, s. 8, for “and such other contingencies as” (w.e.f. 8-5-1955).


-----

**48. Exemption of Banks from income-tax and super-tax.—(1) Notwithstanding anything contained**

in [1][the Income-tax Act, 1961 (43 of 1961)] or any other enactment for the time being in force relating to
income-tax or super-tax, the bank shall not be liable to pay income-tax or super-tax on any of its income,
profits or gains.

2*  -  -  -  
3*  -  -  -  

**49. Publication of Bank rate.—The Bank shall make public from time to time the standard rate at**

which it is prepared to buy or re-discount bills of exchange or other commercial paper eligible for
purchase under this Act.

4[50. Auditors.—(1) Not less than two auditors shall be appointed, and their remuneration fixed, by

the Central Government.

(2) The auditors shall hold office for such term not exceeding one year as the Central Government

may fix while appointing them, and shall be eligible for re-appointment.]

**51. Appointment of special auditors by Government.—Without prejudice to anything contained in**

section 50, the [5][Central Government] may at any time appoint the [6][Comptroller and Auditor-General]
7*** to examine and report upon the accounts of the Bank.

**52. Powers and duties of auditors.—(1) Every auditor shall be supplied with a copy of the annual**

balance-sheet, and it shall be his duty to examine the same, together with the accounts and vouchers
relating thereto; and every auditor shall have a list delivered to him of all books kept by the Bank, and
shall at all reasonable time have access to the books, accounts and other documents of the Bank, and may
at the expense of the Bank [8]*** employ accountants or other person to assist him in investigating such
accounts, and may, in relation to such accounts, examine any Director or officer of the Bank.

(2) The auditors shall make a report [9] *** to the [5][Central Government] [10] *** upon the annual

balance-sheet and accounts, and in every such report they shall state whether, in their opinion, the
balance-sheet is a full and fair balance-sheet containing all necessary particulars and properly drawn up so
as to exhibit a true and correct view of the state of the Bank’s affairs, and, in case they have called for any
explanation or information from the Central Board, whether it has been given and whether it is
satisfactory. [11]***.

**53. Returns.—(1) The Bank shall prepare and transmit to the** [5][Central Government] a weekly

account of the Issue Department and of the Banking Department in [12] [such] form as the [5][Central
Government] may, by notification in the Gazette of India, prescribe. The [5][Central Government] shall
cause these accounts to be [13][published in the Gazette of India at such intervals and in such modified form
as it may deem fit].

1. Subs. by Act 24 of 1978, s. 9, for “Indian Income-tax Act, 1922” (w.e.f. 21-7-1978).
2. The proviso omitted by Act 62 of 1948, s. 7 and the Schedule (w.e.f. 1-1-1949).
3. Sub-section (2) omitted by s. 7 and the Schedule, ibid. (w.e.f. 1-1-1949).
4. Subs. by Act 62 of 1948, s. 7 and the Schedule, for section 50 (w.e.f. 1-1-1949).
5. Subs. by the M.O. 1937, for “G.G. in C.”.
6. Subs. by Act 32 of 1951, s. 18, for “Auditor General” (w.e.f. 1-11-1951).
7. The words “or such auditors as it thinks fit” omitted by Act 62 of 1948, s. 7 and the Schedule (w.e.f. 1-1-1949).
8. The words “if appointed by it or at the expense of the Central Government if appointed by that Government” omitted by

Act 24 of 1955, s. 9 (w.e.f. 8-5-1955).

9. The words “to the shareholders or” omitted by Act 62 of 1948, s. 7 and the Schedule (w.e.f. 1-1-1949).
10. The words “as the case may be” omitted by s. 7 and the Schedule, ibid. (w.e.f. 1-1-1949).
11. The words “Any such report made to the shareholders shall be read, together with the report of the Central Board, at the

annual general meeting” omitted by s. 7 and the Schedule, ibid. (w.e.f. 1-1-1949).

12. Subs. by the M.O. 1937, for certain words
13. Subs. by Act 24 of 1978, s. 9, for “published weekly in the Government of India” (w.e.f. 21-7-1978).


-----

(2) The Batik shall also, within two months from the date on which the annual accounts of the Bank

are closed, transmit to the [1][Central Government] a copy of the annual accounts signed by the Governor,
the Deputy Governors and the Chief Accounting Officer of the Bank, and certified by the auditors,
together with a report by the Central Board on the working of the Bank throughout the year, and the
1[Central Government] shall cause such accounts and report to be published in the Gazette of India.


2* - - - 

3[54. Rural Credit and Development.—The Bank may maintain expert staff to study various aspects

of rural credit and development and in particular it may:—

(a) tender expert guidance and assistance to the National Bank;
(b) conduct special studies in such areas as it may consider necessary to do so for promoting

integrated rural development.]


4[54A. Delegation of powers.—(1) The Governor may, by general or special order, delegate to a

Deputy Governor, subjects to such conditions and limitations, if any, as may be specified in the order,
such of the powers and functions exercisable by him [5]*** under this Act or under any other law for the
time being in force as he may deem necessary for the efficient administration of the functions of the
Bank.

(2) The fact that a Deputy Governor exercises any power or does any act or thing in pursuance of this

Act shall be conclusive proof of his authority to do so.]

6[54AA. Power of Bank to depute its employees to other institutions.—7[(1) The Bank may,

notwithstanding anything contained in any law, or in any agreement, for the time being in force, depute
any member of its staff for such period as it may think fit,—

(a) to any institution which is wholly or substantially owned by the Bank;
(b) to the Development Bank, so, however, that no such deputation shall continue after the

expiration of thirty months from the commencement of section 5 of the Public Financial Institutions
Laws (Amendment) Act, 1975 (52 of 1975);

(c) to the Unit Trust, so, however, that no such deputation shall continue after the expiration of

thirty months from the date notified by the Central Government under sub-section (1) of section
4A of the Unit Trust of India Act, 1963 (52 of 1963);

and thereupon the person so deputed shall, during the period of his deputation, render such service to the
institution to which he is so deputed as that institution may require.]

(2) Where a person has been deputed to an institution under sub-section (1), he shall not be entitled to

claim any salary, emoluments and other terms and conditions of service which he would not have been
entitled to claim if he had not been so deputed.

(3) Nothing contained in this section shall empower the Bank to depute any member of its staff to any

institution on any salary, emoluments or other terms and conditions which is or are less favourable to him
than that or those to which he is entitled immediately before such deputation.

(4) For the purposes of this section, an institution shall be deemed to be substantially owned by the

Bank if in the capital of the institution the Bank has not less than forty per cent, share.

_Explanation.—The word “capital” means, in relation to the Unit Trust, the initial capital of the Trust.]_
**55. [Reports by the Bank].—Omitted by the Reserve Bank (Transfer to Public Ownership) Act, 1948**

(62 of 1948), s. 7 and the Schedule (w.e.f. 1-1-1949).

**56. [Power to require declaration as to ownership of registered shares].—Omitted by s. 7 and the**

_Schedule, ibid. (w.e.f. 1-1-1949)._

1. Subs. by the M.O. 1937, for “G.G. in C.”.
2. Sub-section (3) omitted by Act 62 of 1948, s. 7 and the Schedule (w.e.f. 1-1-1949).
3. Subs. by Act 61 of 1981, s. 61 and the Second Schedule, for section 54 (w.e.f. 12-7-1982).
4. Ins. by Act 24 of 1955, s. 10 (w.e.f. 8-5-1955).
5. The words “by or” omitted by Act 58 of 1960, s. 3 and the Second Schedule (w.e.f. 26-12-1960).
6. Ins. by Act 58 of 1968, s. 28 (w.e.f. 1-2-1969).
7. Subs. by Act 52 of 1975, s. 20, for sub-section (1) (w.e.f. 16-2-1976).


-----

**57. Liquidation of the Bank.—(1) Nothing in the [1][Companies Act, 1956 (1 of 1956)] shall apply to**

the Bank and the Bank shall not be placed in liquidation save by order of the [2][Central Government] and
in such manner as [3][it may direct].


4* - - - 

5[57A. Powers of Bank not to apply to International Financial Services Centre.—Notwithstanding

anything contained in any other law for the time being in force, the powers exercisable by the Bank under
this Act,—

(a) shall not extend to an International Financial Services Centre set up under sub-Section (1) of

Section 18 of the Special Economic Zones Act, 2005 (28 of 2005);

(b) shall be exercisable by the International Financial Services Centres Authority established under

sub-Section (1) of Section 4 of the International Financial Services Centres Authority Act, 2019, in so
far as regulation of financial products, financial services and financial institutions that are permitted in
the International Financial Services Centres are concerned.]

**58. Power of the Central Board to make regulations.—(1) The Central Board may, with the**

previous sanction of the [2][Central Government], [6] [by notification in the Official Gazette,] make
regulations consistent with this Act to provide for all matters for which provision is necessary or
convenient for the purpose of giving effect to the provisions of this Act.

(2) In particular without prejudice to the generality of the foregoing provision, such regulations may

provide for all or any of the following matters, namely:—


7* - - - 

(f) the manner in which the business of the Central Board shall be transacted, and the procedure

to be followed at meetings thereof;

(g) the conduct of business of Local Boards and the delegation to such Boards of powers and

functions;

(h) the delegation of powers and functions of the Central Board [8]*** to Deputy Governors,

Directors or officers of the Bank;

(i) the formation of Committees of the Central Board, the delegation of powers and functions of

the Central Board to such Committees, and the conduct of business in such Committees;

(j) the constitution and management of staff and superannuation funds for the officers and

servants of the Bank;

(k) the manner and form in which contracts binding on the Bank may be executed;
(l) the provision of an official seal of the Bank and the manner and effect of its use;
(m) the manner and form in which the balance-sheet of the Bank shall be drawn up and in which

the accounts shall be maintained;

(n) the remuneration of Directors of the Bank;
(o) the relations of the scheduled banks with the Bank and the returns to be submitted by the

scheduled banks to the Bank;

(p) the regulation of clearing-houses for the [9][banks (including post office savings banks)];

10[(pp) the regulation of fund transfer through electronic means between the banks or between the

banks and other financial institutions referred to in clause (c) of section 45-I, including the laying

1. Subs. by Act 19 of 1957, s. 5, for “Indian Companies Act, 1913 (7 of 1913)” (w.e.f. 8-6-1957).
2. Subs. by the M.O. 1937, for “G.G. in C.”.
3. Subs. by ibid., for “he may direct”.
4. Sub-section (2) omitted by Act 62 of 1948, s. 7 and the Schedule (w.e.f. 1-1-1949).
5. Ins. by Act 50 of 2019, s. 33 and the second Schedule (w.e.f. 1-10-2020).
6. Ins. by Act 66 of 1988, s. 6 (w.e.f. 30-12-1988).
7. Clauses (a) to (e) omitted by Act 62 of 1948, s. 7 and the Schedule (w.e.f. 1-1-1949).
8. The words “to the Governor, or” omitted by Act 54 of 1953, s. 8 (w.e.f. 30-12-1953).
8. Subs. by Act 66 of 1988, s. 6, for “the scheduled banks” (w.e.f. 30-12-1988).
9. Ins. by Act 21 of 2000, s. 94 and the Fourth Schedule (w.e.f. 9-6-2000).


-----

down of the conditions subject to which banks and other financial institutions shall participate in such
fund transfers, the manner of such fund transfers and the rights and obligations of the participants in
such fund transfers;]

(q) the circumstances in which, and the conditions and limitations subject to which, the value of

any lost, stolen, mutilated or imperfect currency note of the Government of India or bank note may be
refunded;

1 [(qa) the remuneration and other allowances payable to Members of the Monetary Policy

Committee under sub-section (2) of section 45ZD;

(qb) the functions of the Secretary under sub-section (2) of section 45ZG;

(qc) the procedure, manner of conducting of meetings and related matters of the Monetary Policy

Committee under sub-section (12) of section 45ZI;

(qd) the particulars and the frequency of publication of document under sub-section (2) of section

45ZJ;

(qe) the form and contents of the Monetary Policy Report to be published under sub-section (2) of

section 45ZM;] and

(r) generally, for the efficient conduct of the business of the Bank.

2[(3) Any regulation made under this section shall have effect from such earlier or later date as may

be specified in the regulation.

(4) Every regulation shall, as soon as may be after it is made by the Central Board, be, forwarded to

the Central Government and that Government shall cause a copy of the same to be laid before each House
of Parliament, while it is in session, for a total period of thirty days which may be comprised in one
session or in two or more successive sessions, and if, before the expiry of the session immediately
following the session or the successive sessions aforesaid, both Houses agree in making any modification
in the regulation, or both Houses agree that the regulation should not be made, the regulation shall,
thereafter, have effect only in such modified form or be of no effect, as the case may be; so, however, that
any such modification or annulment shall be without prejudice to the validity of anything previously done
under that regulation.]

3[(5)] Copies of all regulations made under this section shall be available to the public on payment.

4[58A. Protection of action taken in good faith.—(1) No suit, prosecution or other legal proceeding

shall lie against the Central Government or the Bank or any other person in respect of anything which is
in good faith done or intended to be done under this Act or in pursuance of any order, regulation or
direction made or given thereunder.

(2) No suit or other legal proceeding shall lie against the Central Government or the Bank for any

damage caused or likely to be caused by anything which is in good faith done or intended to be done
under this Act or in pursuance of any order, regulation or direction made or given thereunder.]


5[CHAPTER V


PENALTIES


**58B. Penalties.—(1) Whoever in any application, declaration, return, statement, information or**

particulars made, required or furnished by or under or for the purposes of any provisions of this Act, or
any order, regulation or direction made or given thereunder or in any prospectus or advertisement issued
for or in connection with the invitation by any person, of deposits of money from the public wilfully
makes a statement which is false in any material particular knowing it to be false or willfully omits to
make a material statement shall be punishable with imprisonment for a term which may extend to three
years and shall also be liable to fine.

1. Ins. by Act 28 of 2016, s. 223 (w.e.f. 27-6-2016).
2. Ins. by Act 51 of 1974, s. 24 (w.e.f. 13-12-1974).
3. Sub-section (3) renumbered as sub-section (5) thereof by s. 24, ibid. (w.e.f. 13-12-1974).
4. Ins. by s. 25, ibid. (w.e.f. 13-12-1974).
5. Ins. by s. 26, ibid. (w.e.f. 13-12-1974).


-----

(2) If any person fails to produce any book, account or other document or to furnish any statement,

information or particulars which, under this Act or any order, regulation or direction made or given
thereunder, it is his duty to produce or furnish or to answer any question put to him in pursuance of the
provisions of this Act or of any order, regulation or direction made or given thereunder, he shall be
punishable with fine which may extend to [1][one lakh rupees] in respect of each offence and if he persists
in such failure or refusal, with further fine which may extend to [2][five thousand rupees] for every day,
after the first during which the offence continues.

(3) If any person contravenes the provisions of section 31, he shall be punishable with fine which may

extend to the amount of the bill of exchange, _hundi, promissory note or engagement for payment of_
money in respect whereof the offence is committed.

(4) If any person discloses any credit information, the disclosure of which is prohibited under section

45E, he shall be punishable with imprisonment for a term which may extend to six mounts, or with fine
which may extend to one thousand rupees, or with both.

3[(4A) If any person contravenes the provisions of sub-section (1) of section 45-IA, he shall be

punishable with imprisonment for a term which shall not be less than one year but which may extend to
five years and with fine which shall not be less than one lakh rupees but which may extend to [4][twentyfive lakh rupees].

(4AA) If any auditor fails to comply with any direction given or order made by the Bank under

section 45MA, he shall be punishable with fine which may extend to [5][ten lakh rupees].

(4AAA) Whoever fails to comply with any order made by the Company Law Board under

sub-section (2) of section 45QA, shall be punishable with imprisonment for a term which may extend to
three years and shall also be liable to a fine of not less than [6][five thousand rupees] for every day during
which such non-compliance continues.]


(5) If any person [7][other than an auditor]—


(a) receives [8][any deposit without being authorised so to do or] in contravention of any direction

given or order made under Chapter IIIB; or

1[(aa) fails to comply with any direction given or order made by the Bank under any of the

provisions of Chapter IIIB; or]

(b) issues any prospectus or advertisement otherwise than in accordance with [9][section 45J] or

any order made under section 45], as the case may be,


he shall be punishable with imprisonment for a term which may extend to three years and shall also be
liable to fine which may extend,—

(i) in the case of a contravention falling under clause (a), to twice the amount of the deposit

received; and

(ii) in the case of a contravention falling under clause (b), to twice the amount of the deposit

called for by the prospectus or advertisement.


10
[(5A) If any person contravenes any provision of section 45S, he shall be punishable with

imprisonment for a term which may extend to two years, or with fine which may extend to twice the

1. Subs. by Act 23 of 2019, s. 142, for “two thousand rupees” (w.e.f. 9-8-2019).
2. Subs. by s. 142, ibid., for “one hundred rupees” (w.e.f. 9-8-2019).
3. Ins. by Act 23 of 1997, s. 10 (w.e.f. 9-1-1997).
4. Subs. by Act 23 of 2019, s. 142, for “five lakh rupees” (w.e.f. 9-8-2019).
5. Subs. by s. 142, ibid., for “five thousand rupee” (w.e.f. 9-8-2019).
6. Subs. by s. 142, ibid., for “rupees fifty” (w.e.f. 9-8-2019).
7. Ins. by Act 23 of 1997, s. 10 (w.e.f. 9-1-1997).
8. Subs. by Act 23 of 2019, s. 142, for “any deposit” (w.e.f. 9-8-2019).
9. Subs. by s. 142, ibid., for the “section 45NA” (w.e.f. 9-8-2019).
10. Ins. by Act 1 of 1984, s. 11 (w.e.f. 15-2-1984).


-----

amount of deposit received by such person in contravention of that section, or two thousand rupees,
whichever is more, or with both:

Provided that in the absence of special and adequate reasons to the contrary to be mentioned in the

judgment of the court, the imprisonment shall not be less than one year and the fine shall not be less than
one thousand rupees.

(5B) Notwithstanding anything contained in section 29 of the Code of Criminal Procedure, 1973 (2 of

1974), it shall be lawful for Metropolitan Magistrate or a Judicial Magistrate of the first class to impose a
sentence of the fine in excess of the limit specified in that section on any person convicted under
sub-section (5A).]

(6) If any other provision of this Act is contravened of if any default is made in complying with any

other requirement of this Act or of any order, regulation or direction made or given or condition imposed
thereunder, any person guilty of such contravention or default shall be punishable with fine which may
extend to [1][one lakh rupees] and where a contravention or default is a continuing one, with further fine
which may extend to [2][ten thousand rupees] for every day, after the first, during which the contravention
or default continues.

**58C. Offences by companies.—(1) Where a person committing a contravention or default referred to**

in section 58B is a company, every person who, at the time the contravention or default was committed,
was in charge of, and was responsible to, the company for the conduct of the business of the company, as
well as the company, shall be deemed to be guilty of the contravention or default and shall be liable to be
proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to punishment

if he proves that the contravention or default was committed without his knowledge or that he had
exercised all due diligence to prevent the contravention or default.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been

committed by a company and it is proved that the same was committed with the consent or connivance of,
or is attributable to any neglect on the part of, any director, manager, secretary, or other officer or
employee of the company, such director, manager, secretary, other officer or employee shall also be
deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.

_Explanation 1.—Any offence punishable under this Act shall be deemed to have been committed at_

the place where the registered office or the principal place of business, as the case may be, in India, of the
company is situated.

_Explanation 2.—For the purpose of this section,—_

(a) “a company” means any body corporate and includes a corporation, a non-banking institution,

a firm, a co-operative society or other association of individuals;

(b) “director”, in relation to a firm, means a partner in the firm.

**58D. Application of section 58B barred.—Nothing contained in section 58B shall apply to, or in**

respect of, any matter dealt with in section 42.

**58E. Cognizance of offences.—(1) No court shall take cognizance of any offence punishable under**

this Act except upon a complaint in writing made by an officer of the Bank, generally or specially
authorised in writing in this behalf by the Bank, and no court other than that of a Metropolitan Magistrate
or a Judicial Magistrate of the first class or a court superior thereto shall try any such offence:

3 [Provided that in respect of any offence punishable under sub-section (5A) of section 58B, a

complaint in writing may also be made by an officer of the State Government, generally or specially
authorised in writing in this behalf by that Government.]

1. Subs. by Act 23 of 2019, s. 142 for “two thousand rupees” (w.e.f. 9-8-2019).
2. Subs. by s. 142, ibid., for “one hundred rupees” (w.e.f. 9-8-2019).
3. Added by Act 1 of 1984, s. 12 (w.e.f. 15-2-1984).


-----

(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974) a

Magistrate may, if he see reason so to do, dispense with the personal attendance of the officer of the Bank
filing the complaint, but the Magistrate may in his discretion, at any stage of the proceedings, direct the
personal attendance of the complainant.

**58F. Application of fine.—A Court imposing any fine under this Act may direct that the whole or**

any part thereof shall be applied in, or towards payment of, the costs of the proceedings.]

1[58G. Power of Bank to impose fine.—(1) Notwithstanding anything contained in section 58B, if

the contravention or default of the nature referred to in section 58B is committed by a non-banking
financial company, the Bank may impose on such non-banking financial company—


(a) a penalty not exceeding [2][twenty-five thousand]; or


(b) where the contravention or default is under sub-section (4A) or clause (a) or clause (aa) of

sub-section (5) of section 58B, a penalty of [3][ten lakh] rupees or twice the amount involved in such
contravention or default, where the amount is quantifiable, whichever is more; and where such
contravention or default is a continuing one, further penalty which may extend to [4][one lakh] rupees
for every day, after the first, during which the contravention or default continues.

(2) For the purpose of imposing penalty under sub-section (1), the Bank shall serve a notice on the

non-banking financial company requiring it to show cause why the amount specified in the notice should
not be imposed as a penalty and a reasonable opportunity of being heard shall also be given to such
non-banking financial company.

(3) Any penalty imposed by the Bank under this section shall be payable within a period of thirty

days from the date on which notice issued by the Bank demanding payment of the sum is served on the
non-banking financial company and, in the event of failure of the non-banking financial company to pay
the sum within such period, may be levied on a direction made by the principal civil court having
jurisdiction in the area where the registered office or the head office of the non-banking financial
company is situated:

Provided that no such direction shall be made, except on an application made by an officer of the

Bank authorised in this behalf, to by the principal civil court.

(4) The court which makes a direction under sub-section (4), shall issue a certificate specifying the

sum payable by the non-banking financial company and every such certificate shall be enforceable in the
same manner as if it were a decree made by the court in a civil suit.

(5) No complaint shall be filed against any non-banking financial company in any court of law

pertaining to any contravention or default in respect of which any penalty has been imposed by the Bank
under this section.

(6) Where any complaint has been filed against a non-banking financial company in a court in respect

of contravention or default of the nature referred to in section 58B, no proceedings for imposition of
penalty against that non-banking financial company shall be taken under this section.]

**59.** [Amendment of Act 3 of 1906 (Repealed)].—Rep. by the Repealing and Amending Act, 1937

(20 of 1937), s. 3 and the Second Schedule (w.e.f. 14-4-1937).

**60. [Repeals].—Rep. by s. 3 and the Second Schedule, ibid. (w.e.f. 14-4-1937).**

**61. [Amendment of section II, Act VII of 1913].—Rep. by s. 3 and the Second Schedule, ibid. (w.e.f.**

14-4-1937).

1. Ins. by Act 23 of 1997, s. 11 (w.e.f. 9-1-1997).
2. Subs. by Act 23 of 2019, s. 143 for “five thousand” (w.e.f. 9-8-2019).
3. Subs. by s. 143, ibid., for “five lakh” (w.e.f. 9-8-2019).
4. Subs. by s. 143, ibid., for “twenty-five thousand” (w.e.f. 9-8-2019).


-----

1[THE FIRST SCHEDULE



[See section 9]

2
[1. The Western Area shall consist of the States of Goa, Gujarat, Madhya Pradesh and
Maharashtra and the Union territories of Dadra and Nagar Haveli, and Daman and Diu.

2. The Eastern Area shall consist of the States of Arunachal Pradesh, Assam, Bihar, Manipur,
Meghalaya, Mizoram, Nagaland, Orissa, Sikkim, Tripura and West Bengal and the Union
territories of Andaman and Nicobar Islands.]

3. The Northern Area shall consist of the States of Jammu and Kashmir, [3] [Punjab,
Haryana,] [4] [Himachal Pradesh], Rajasthan and Uttar Pradesh and the Union territories of
5[Chandigarh] 6[and Delhi].

4. The Southern area shall consist of the States of Andhra Pradesh, [7][Karnataka], [8][Tamil Nadu]
and Kerala and the [9][Union territories of Pondicherry and [10][Lakshadweep]].]

1. Subs. by the Adaptation of Laws (No. 3) Order, 1956, for the former First Schedule.
2. Subs. by Act 23 of 1997, s. 12, for items 1 and 2 (w.e.f. 9-1-1997).
3. Subs. by the Punjab Reorganisation and Delhi High Court (Adaptation of Laws on Union Subjects) Order, 1968, for “Punjab”

(w.e.f. 1-11-1956).

4. Ins. by the State of Himachal Pradesh (Adaptation of Laws on Union Subjects) Order, 1973 (w.e.f. 25-1-1971).
5. Ins. by the Punjab Reorganisation and Delhi High Court (Adaptation of Laws on Union Subjects) Order, 1968 (w.e.f. 1-11
1966).

6. Subs. by the State of Himachal Pradesh (Adaptation of Laws on Union Subjects) Order, 1973, for “Himachal Pradesh and

Delhi” (w.e.f. 25-1-1971).

7. Subs. by the Mysore State (Alteration of Name) (Adaptation of Laws on Union Subjects) Order, 1974, for “Mysore”

(w.e.f. 1-11-1973).

8. Subs. by the Madras State (Alteration of Name) Adaptation of Laws on Union Subjects) Order, 1970, for “Madras”

(w.e.f. 14-1-1969).

9. Subs. by Reg. 7 of 1963, s. 8, for “Union territory of Laccadive, Minicoy and Admindivi Islands”.
10. Subs. by the Laccadive, Minicoy and Amindivi Islands (Alteration of Name) Adaptation of Laws Order, 1974, for

“Laccadive, Minicoy and Amindivi Islands.” (w.e.f. 1-11-1973).


-----

1THE SECOND SCHEDULE

[See section 42 and section 2(e)]

SCHEDULED BANKS

AbhyudayaCo-operativeBankLtd.,Bombay.

2*  -  -  - *.

AhmednagarSahakari Bank Ltd., Mumbai (1998)

Ajodhia Bank, Fyzabad.

3*  -  -  - *.

Akola Janta Commercial Co-operative Bank Ltd., Akola (Maharashtra). (w.e.f. 22-5-1999).

Akola Urban Co-operative Bank Ltd., Akola (Maharashtra).

4*  -  -  -  
Algemene Bank Nederland N.V.

5*  -  -  -  
Allahabad Bank.

6*  -  -  - *.

7[Allahabad UP Gramin Bank Uttar Pradesh.]

8*  -  -  -  
Amahath Co-operative Bank Ltd., Bangalore (Karnataka) (w.e.f. 29-1-2002).

9*  -  -  -  
10*  -  -  -  
11[American Express Banking Corp.]

American Express International Banking Corporation.

ANZ Grindlays Bank Limited (6-8-1996).

Andhra Bank.

12[Andhra Pradesh GrameenaVikas Bank, Warangal (Andhra Pradesh)]

Andhra Pradesh State Co-operative Bank Ltd., Hyderabad.

12[Andhra PragathiGrameena Bank, Kadape (Andhra Pradesh)]

1. This Schedule was amended by the India and Burma (Burma Monetary Arrangements) Order, 1937; Act 23 of 1955; Act 79 of

1956 and Act 38 of 1959 and by notifications under section 42(6) of this Act from time to time.

2. “AdhiyamanGrama Bank, Dharampuri, Tamil Nadu” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05100/2008-09, dated 22nd September, 2008.

3. “Akola Gramin Bank, Akola, Maharashtra” excluded by RBI Notification No. RPCD.CO. RRB. No. 7431/03.05.100/2008-09,

dated 27th January, 2009.

4. “AlaknandaGramin Bank, Pauri (Uttar Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

5. “Aligarh Gramin Bank, Aligarh (Uttar Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

6. “Allahabad KshetriyaGramin Bank, Allahabad, Uttar Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No.

7431/03.05.100/2008-09, dated 27th January, 2009.

7. Included by RBI Notification No. RPCD.CO. RRB. No. 11377/3.5.100/2010-11, dated 31st March, 2011.
8. “AlwarBharatpurAnchalikGramin Bank, Bharatpur (Rajasthan)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

9. “Ambala-KurukshetraGramin Bank LTD., Ambala (Haryana)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

10. “American Express Bank Ltd.” excluded by RBI Notification No. DBOD.IBD. No. 2095/ 23.13.019/2007-08, dated 5th

March, 2008.

11. Included by RBI Notification No. DBOD.IBD. No. 8739/23.03.018/2008-09, dated 4th December, 2008.
12. Included by RBI Notification No. RPCD.CO. RRB. No. 3231/03.05.100/2008-09, dated 22nd September, 2008.


-----

Arab Bangladesh Bank Limited (10-6-1996).

1*  -  -  -  
Arunachal Pradesh Rural Bank, Pasighat (Arunachal Pradesh).

2*  -  -  -  
3[Assam GraminVikash Bank, Guwahati, Assam]
4*  -  -  -  
5[Australia and New Zealand Banking Group Limited]
6*  -  -  -  
AvaroliKshetriyaGramin Bank SawaiMadhopur (Rajasthan) (1981)

7[Axis Bank Ltd.]

8*  -  -  -  
9*  -  -  -  
10*  -  -  -  
11*  -  -  -  
12[Bandhan Bank Limited]

13[BangiyaGraminVikasBank, Berhampore (West Bengal)]

14*  -  -  -  
Bank International, Indonesia (18-4-1996).

15*  -  -  -  
Bank of America National Association.

Bank of Bahrain and Kuwait BSC (1986).

Bank of Baroda.

Bank of China, Calcutta.

Bank of Cochin Ltd., Ernakulam.

1. “AravaliKshetriyaGramin Bank, SwaiMadhopur (Rajasthan)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/03
05.100/2009-10, dated 21st January, 2010.

2. “AryavartGramin Bank, Lucknow, Uttar Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No.

56/03.05.100/2013-14, dated 14th November, 2013. Earlier it was included by RBI Notification No. RPCD.CO. RRB. No.
3231/03.05.100/2008-09, dated 22nd September, 2008.

3. Included by RBI Notification No. RPCD.CO. RRB. No. 7430/03.05.100/2008-09, dated 27th January, 2009.
4. “Aurangabad JalnaKshetriyaGramin Bank, Aurangabad (Maharashtra)” excluded by RBI Notification No. RPCD.CO. RRB. No.

7431/03.05.100/2008-09, dated 27th January, 2009.

5. Included by RBI Notification No. DBOD.IBD. No. 19042/23.03.024/2010-11, dated 7th June, 2011.
6. “AvadhGramin Bank, Hardoi (Uttar Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No. 3230/03.05.100/2008
09, dated 22nd September, 2008.

7. Name of “UTI Bank LTD.” changed to “Axis Bank LTD.” by Notification DBOD. No. PSBD.1174/1601.127/2007-08, dated

2nd August, 2007 (w.e.f. 30-7-2007).

8. “Baitarani Gramya Bank, Baripada (Odisha)” excluded by RBI Notification No. RPCD.CO. RRB. No. 47/03.05.100/2013-14,

dated 22nd October, 2011.

9. "BalasoreGramya Bank, Balasore (Orissa)" excluded by RBI Notification No. RPCD.CO. RRB. BC. No. 95/03.05.100/2013
14, dated 9th April, 2014.

10. “Ballia-EtawahGramin Bank, Uttar Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No. 47/03.05.100/2013-14, dated

22nd October 2013. Earlier it was included by RBI Notification No. RPCD.CO. RRB. No. 1137[7]/3.5.100/2010-11, dated 31st March,
2011.

11. “BalliaKshetriyaGramin Bank, Ballia (Uttar Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

11379/3.5.100/2010-11, dated 31st March, 2011.

12. Included by RBI Notification No. DBR.PSBD. No. 342[7]/16.01.0145/2015-16, dated 3rd September, 2015.
13. Included by RBI Notification No. RPCD.CO. RRB. No. 7812-A/03.05.100/2009-10, dated 21st January, 2010.
14. “BanaskanthaMehsanaGramin Bank, Patan (Gujarat)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

15. “Bank Muscat” excluded by Notification No. Ret. BC. No. 73/12.06.115/2003-04, dated 2nd April, 2004.


-----

Bank of Credit and Commerce International (Overseas) Ltd.

Bank of Cylon (30-12-1995).

Bank of India

Bank of Karad Ltd., Karad.

Bank of Karnataka,Hubli.

Bank of Kerala Ltd.

Bank of Madura Ltd., Madurai.

Bank of Maharashtra.

Bank of Nova Scotia.

Bank of Oman Ltd.

1*  -  -  -  
2*  -  -  -  
Bank of Tamilnadu Ltd.

Bank of Thanjavur Ltd.

3[Bank of Tokyo Mitsubishi UFG Ltd.]

Banque Indosuez.

BanqueNationale de Paris.

4*  -  -  -  
5*  -  -  -  
Bareilly Corporation Bank Ltd., Bareilly.

6*  -  -  -  
7[Baroda Gujarat Gramin Bank, Bharuch (Gujarat).]

8[Baroda Rajasthan KshetriyaGramin Bank, Ajmer, Rajasthan].

9*  -  -  -  
10[Baroda Uttar Pradesh Gramin Bank, Raebareli, Uttar Pradesh.]

11*  -  -  -  
12*  -  -  -  
1. Bank of Punjab Ltd." excluded by Notification DBOD. No. PSBD 353/16.01.130/2005-06, dated 7th October, 2005 (w.e.f. 1
10-2005).

2. “Bank of Rajasthan Ltd.” excluded by RBI Notification No. DBOD. No. PSBD/2866/16.01.056/ 2010-11, dated 18th August,

2010 (w.e.f. 13-8-2010).

3. Subs. by Notification No. DBOD. No. IBD. No. 937/23.03-007/2005-2006, dated 26th December, 2005, for “The Bank of

Tokyo Mitsubishi Ltd.”

4. “Bara BankiGramin Bank, Bara Banki (Uttar Pradesh)” excluded by RBI Notification 4o. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

5. “BardhamanGramin Bank. Burdwan (West Bengal)” excluded by RBI Notification No. RPCD.CO. RRB. BC. No.

95/03.05.100/2013-14, dated 9th April, 2014.

6. “Bareilly KshetriyaGramin Bank, Bareilly, Uttar Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No.

7431/03.05.100/2008-09, dated 27th January, 2009.

7. Included by RBI Notification No. RPCD.CO. RRB. No. 3231/03.05.100/2008-09, dated 22nd September, 2008.
8. Included by RBI Notification No. RPCD.CO. RRB. No. 55/03.05.100/2013-14, dated 14th November, 2013.
9. “Baroda Rajasthan Gramin Bank, Ajmer, Rajasthan” excluded by RBI Notification No. RPCD.CO. RRB. No.

56/03.05.100/2013-14, dated 14th November, 2013.

10. Included by RBI Notification No. RPCD.CO. RRB. No. 7430/03.05.100/2008-09, dated 27th January, 2009.
11. “BastarKshetriyaGramin Bank, Jagdalpur, Chhatisgarh” excluded by RBI Notification No. RPCD.CO. RRB. No.

7431/03.05.100/2008-09, dated 27th January, 2009.

12. “BastiGramin Bank, Basti, Uttar Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No. 7431/03.05.100/2008-09,

dated 27th January, 2009.


-----

1*  -  -  -  
2*  -  -  -  
3*  -  -  -  
4*  -  -  -  
5*  -  -  -  
6[Bharat Co-operative Bank (Mumbai) Ltd., Mumbai.]

Bharat Overseas Bank Ltd., Madras.

BharatiSahakari Bank Ltd., Pune- 411030 (Maharashtra) (w.e.f. 1-6-2002).

7*  -  -  -  
8*  -  -  -  
BidurGramin Bank, Bijnor (U.P.) (1983).

9[Bihar Gramin Bank, Bagusarai, Bihar.]

10*  -  -  -  
Bihar State Co-operative Bank Ltd., Patna.

11*  -  -  -  
12*  -  -  -  
13*  -  -  -  
14*  -  -  -  
Bombay Mercantile Co-operative Bank Ltd., Bombay.

15*  -  -  -  
1. “BegusaraiKshetriyaGramin Bank, Begusarai (Bihar)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812
B/03.05.100/2009-10, dated 21st January, 2010.

2. “Benaras State Bank Ltd.” excluded by Notification No. DBOD. No. PSBD. 1326/16.01.070/ 003-2004, dated 1st July, 2003.
3. “Bhagalpur-Banka KshetriyaGramin Bank, Bhagalpur (Bihar)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812
B/03.05.100/2009-10, dated 21st January, 2010.

4. "BhagirathGramin Bank, Sitapur (Uttar Pradesh)" excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

5. “BhandaraGramin Bank, Bhandara (Mahrashtra)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812
B/03.05.100/2009-10, dated 21st January, 2010.

6. Subs. by Notification No. UBD. No. BR. 150/16.05.00/97-98, dated 3rd April, 1998, for “Bharat Co-operative Bank Ltd.,

Mumbai, Maharashtra”.

7. “Bhilwara Ajmer Kshetriya Gamin Bank (Rajasthan)” excluded by RBI Notification No. RPCD.CO. RRB. No. 1782
B/03.05.100/2009-10, dated 21st January, 2010.

8. “BhojpurRohtasGramin Bank, Arrah (Bihar)” excluded by RBI Notification No. RPCD.CO. RRB. No. 3230/03.05.100/2008
09, dated 22nd September, 2008.

9. Included by RBI Notification No. RPCD.CO. RRB. No. 55/03.05.100/2013-14, dated 14th November, 2013.
10. “Bihar KshetriyaGramin Bank, Munger, Bihar” excluded by RBI Notification No. RPCD.CO. RRB. No. 56/03.05.100/2013
14, dated 14th November, 2013. Earlier it was included by RBI Notification No. RPCD.CO. RR''. No. 7812A/03.05.100/2009-10, dated 21st January, 2010.

11. “BijapurGrameena Bank, Bijapur (Karnataka)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

12. “Bikaner KshetriyaGramin Bank, Bikaner, Rajasthan” excluded by RBI Notification No. RPCD.CO. RRB. No.

7431/03.05.100/2008-09, dated 27th January, 2009.

13. “Bilaspur Raipur KshetriyaGramin Bank, Bilaspur, Chhatisgarh” excluded by RBI Notification No. RPCD.CO. RRB.N.

"131/03.05.100/2008-09, dated 27th January, 2009.

14. “BolangirAnclalikGramya Bank, Bolangir (Orissa)” excluded by RBI Notification No. RPCD.CO. RRB. No.

11379/3.5.100/2010-11, dated 31st March, 2011.

15. “British Bank of the Middle East”, omitted by Notification No. DBOD.IBS.817/23, 13. 022/ 99, dated 25th September, 1999.


-----

1*  -  -  -  
2*  -  -  -  
3*  -  -  -  
4*  -  -  -  
Canara Bank.

Canara Industrial and Banking Syndicate, Udipi.

Catholic Syrian Bank Ltd., Trichur.

5*  -  -  -  
6*  -  -  -  
Central Bank of India.

7[Central Madhya Pradesh Gramin Bank, Chhindwara, Madhya Pradesh.]

8[Centurion Bank of Punjab Limited]*.

9*  -  -  -  
6[Chaitanya Godavari Grameena Bank, Guntur, (Andhra Pradesh).]

10*  -  -  -  
11*  -  -  -  
12*  -  -  -  
13*  -  -  -  
14*  -  -  -  
Chase Manhattan Bank (17-8-1996).

1. “BuldhanaGramin Bank, Buldhana, Maharashtra” excluded by RBI Notification No. RPCD. CC. P RB . No.

7431/03.05.100/2008-09, dated 27th January, 2009.

2. “BundelkhandKshetriyaGramin Bank, Tikamgarh (Madhya Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

3. “Bundi-ChhittorgarhKshetriyaGramin Bank, Bundi (Rajasthan)” excluded by RBI Notification No. RPCD.CO. RRB. No.

7812-B/03-05.100/2009-10, dated 21st January, 2010.

4. “CacharGramin Bank, Silchar Assam” excluded by RBI Notification No. RPCD.CO. RRB. No. 7431/03.05.100/2008-09,

dated 27th January, 2009.

5. “Cauvery Grameena Bank, Mysore (Karnataka)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

6. “Cauvery KalpatharuGrameena Bank, Mysore, Karnataka” excluded by RBI Notification No. RPCD.CO. RRB. No.

47/03.05.100/2013-14, dated 22nd October 2013. Earlier it was included by RBI Notification No. RPCD.CO. RRB. No.
3231/03.05.100/2008-09, dated 22nd September, 2008.

7. Included by RBI Notification No. RPCD.CO. RRB. No. 55/03.05.100/2013-14, dated 14th November, 2013.
8. Subs. by Notification No. DBOD. No. PSBD. 390/16-01/130/2005-06, dated 21st October, 2005, for “Centurion Bank

Limited”.

*** Ed.-"Centurion Bank of Punjab" has been merged with HDFC Bank with effect from 23rd May, 2008.**
9. “ChaitanyaGrameena Bank, Tenali, Guntur (Andhra Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

10. “Chambal KshetriyaGramin Bank, Morena (Madhya Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

7812-B/03-05.100/2009-10, dated 21st January, 2010.

11. “ChamparanKshetriyaGramin Bank, Motihari (Bihar)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/03
05.100/2009-10, dated 21st January, 2010.

12. “ChandrapurGadchiroliGramin Bank, Chandrapur (Maharastra)” excluded by RBI Notification No. RPCD.CO. RRB. No.

7812-B/03-05.100/2009-10, dated 21st January, 2010.

13. “Charminar Co-operative Urban Bank Ltd., Hyderabad (Andhra Pradesh)” omitted by Notification No. F. No. UBD/CO/BSD

III/12.24.013/2011-12, dated 24th November, 2011.

14. “CharotarNagrikSahakari Bank Ltd., Anand (Gujarat)” excluded by Notification No. UBD. CO. BSD (SCB) 12.03.208/2003
04, dated 11th August, 2003.


-----

1*  -  -  -  
2*  -  -  -  
3[ChattisgarhRajyaSahakari Bank Maryadit, Raipur].

4[Chhattisgarh RajyaGramin Bank, Raipur, Chhattisgarh.]

5*  -  -  -  
6*  -  -  -  
Chinatrust Commercial Bank (22-6-1996).

7*  -  -  -  
Citi Bank N.A.

City Union Bank Ltd.

Commerce Bank AG (1996).

Commercial Bank of Korea Ltd. (10-5-1997).

8[Commonwealth Bank of Australia.]

Comptoir National D’ Escompte de Paris.

9*  -  -  -  
Corporation Bank.

10[Credit Agricale Corporate Investment Bank.]

11*  -  -  -  
12[Credit Suisee A.G.]

13*  -  -  -  
14[DBS Bank Limited].

15*  -  -  -  
1. “ChattrasalGramin Bank, Orai (Uttar Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No. 3230/03.05.100/2008
09, dated 22nd September, 2008.

2. “Chhattisgarh Gramin Bank, Raipur, Chhattisgarh” excluded by RBI Notification No. RPCD.CO. RRB. BC. No.

99/03.05.100/2013-14, dated 8th Mav, 2014. Earlier it was included by RBI Notification No. RPCD.CO. RRB. No.
7430/03.05.100/2008-09, dated 27th January, 2009.

3. Included by RBI Notification No. RPCD.RCB. BC No. 34/07.04.007/2013-14, dated 16th September, 2013.
4. Included by RBI Notification No. RPCD.CO. RRB. BC No. 98/03.05.100/2013-14, dated 8th May, 2014.
5. “Chhindawara - SeoniKshetriyaGramin Bank, Chhindawara (Madhya Pradesh)” excluded by RBI Notification No. RPCD.CO.

RRB. No. 7812-B/03-05.100/2009-10, dated 21st January, 2010.

6. “Chikmagalur-KodaguGrameena Bank, Chikmagalur, Karnataka” excluded by RBI Notification No. RPCD.CO. RRB. No.

47/03.05.100/2013-14, dated 22nd October 2013.

7. “ChitradurgaGramin Bank, Chitradurga (Karnataka)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

8. Included by RBI Notification No. DBOD.IBD. No. 16082/23.13.127/2009-10, dated 19th March, 2010.
9. “The Co-operative Bank of Ahmedabad Ltd., Ahmedabad”, excluded by Notification No. UBD/CO/BCD/01/12.22.040 /2005
2006, dated 20th June, 2006.

10. Subs. by RBI Notification No. 16813/23.13.025/2009-10, dated 31st March, 2010, for “Calyon Bank”. Earlier the words

“Calyon Bank” were substituted by Notification No. Ret. BC. No. 2/ 12.06.063/2004-05, dated 6th July, 2004, for the words
“Credit Agricale Indosuez”.

11. “Credit Lyonnais Bank” excluded by Notification No. Ret. BC. No. 1/12.06.115/2004-05, dated 6th July, 2004.

12. Included by Notification No. DBOD.IBD. No. 13983/23.03.025/2010-11, dated 8th March, 2011.
13. “Cuttack Gramya Bank, Cuttack (Orissa)” excluded by RBI Notification No. RPCD.CO. RRB. BC. No. 95/03.05.100/2013
14, dated 9th April, 2014.

14. Subs. by Notification No. BC. 29/12.06.096/2003-04, dated 6th October, 2003, for “Development Bank of Singapore Limited

1995”.

15. “Damoh-Panna-SagarKshetriyaGramin Bank, Damoh (Madhya Pradesh)” excluded by RIM Notification No. RPCD.CO. RRB.

No. 3230/03.05.100/2008-09, dated 22nd September, 2008.


-----

1[Deccan Grameena Bank, Rangareddy (Andhra Pradesh).]

Dena Bank, Bombay.

1[Dena Gujarat Gramin Bank, Gandhi Nagar (Gujarat).]

Deutsche Bank A.G. (1988).

Development Co-operative Bank Ltd., Bombay (1995).

Development Credit Bank Limited (1995).

2*  -  -  -  
3*  -  -  -  
4[Dhanalakshmi Bank Ltd.]; Trichur.

5*  -  -  -  
6*  -  -  -  
7*  -  -  -  
8*  -  -  -  
Eastern Bank.

EllaquaiDehati Bank, Srinagar (Jammu & Kashmir).

Emirates Commercial Bank Ltd.

9*  -  -  -  
10*  -  -  -  
European Asian Bank.

11*  -  -  -  
FaridkotBhatindaKshetriyaGramin Bank, Bhatinda (Punjab).

12*  -  -  -  
13*  -  -  -  
1. Included by RBI Notification No. RPCD.CO. RRB. No. 3231/03.05.100/2008-09, dated 22nd September, 2008.
2. “Devi PatanKshetriyaGramin Bank, Gonda, Uttar Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No.

7431/03.05.100/2008-09, dated 27th January, 2009.

3. “DewasShajapurKshetriyaGramin Bank, Dewas (Madhya Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB.

No. 3230/03.05.100/2008-09, dated 22nd September, 2008.

4. Subs. by Notification No. DBOD.PSBD. 7516/16.01.061/2010-11, dated 3rd November, 2010, for “The Dhanalakshmi Bank

Limited”.

5. “DhenkanalGramya Bank, Dhenkanal (Orissa)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/03
05.100/2009-10, dated 21st January, 2010.

6. “Dresdner Bank AG” excluded by Notification No. IBS 61[2]/23-13-063/2002-2003, dated 21st September, 2002.
7. “Dungarpur-BanswaraKshetriyaGramin Bank Dungarpur (Rajasthan)” excluded by RBI Notification No. RPCD.CO. RRB.

No. 7812-B/03-05.100/2009-10, dated 21st January, 2010.

8. “Durg-RajanandgaonGramin Bank, Rajanandgaon, Chhattisgarh” excluded by RBI Notification No. RPCD.CO. RRB. BC. No.

99/03.05.100/2013-14, dated 8th May, 2014.

9. “EtahGramin Bank, Etah (Uttar Pradesh)" excluded by RBI Notification No. RPCD.CO. RRB. No. 3230/03.05.100/2008-09,

dated 22nd September, 2008.

10. “EtawahKshetriyaGramin Bank, Etawah (Uttar Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

11379/3.5.100/2010-11, dated 31st March, 2011.

11. “FaizabadKshetriyaGramin Bank, Faizabad, Uttar Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No.

7431/03.05.100/2008-09, dated 27th January, 2009.

12. “Farook College Employees' Co-operative Society Ltd.,” ceased to be a Co-operative Bank, vide Notification No. 4BD. BR.

128/16.43.300/95-96, dated 1st September, 1995.

13. “FarrukhabadGramin Bank, Farrukhabad (Uttar Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.


-----

1*  -  -  -  
Federal Bank Ltd.,Alwaye.

Fuji Bank Limited (20-7-1996).

Gadodia Bank, Bombay.

2*  -  -  -  
3*  -  -  -  
4*  -  -  -  
General Bank of Netherlands.

5*  -  -  -  
6*  -  -  -  
Goa State Co-operative Bank Ltd. (1994).

7*  -  -  -  
8*  -  -  -  
9*  -  -  -  
10*  -  -  -  
11*  -  -  -  
12[Gramin Bank of Aryavart, Lucknow, Uttar Pradesh.]

Grindlays Bank P.L.C.

Gujarat State Co-operative Bank Ltd., Ahmedabad.

13*  -  -  -  
Gurgaon Gramin Bank, Gurgaon (Haryana).

14*  -  -  -  
1. “FatehpurKshetriyaGramin Bank, Fatehpur, Uttar Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No.

7431/03.05.100/2008-09, dated 27th January, 2009.

2. “The Ganesh Bank of Kurundwad Ltd.” excluded by Notification DBOD. No. PSBD.2915/ 16.01.103/2006-07, dated 26th

September, 2006 (w.e.f. 21-10-2006).

3. “Ganga Yamuna Gramin Bank, Dehradun (Uttar Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

4. “Gaur Gramin Bank, Malda (West Bengal)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/03-05.100/2009
10, dated 21st January, 2010.

5. “GiridihKshetriyaGramin Bank, Giridih (Bihar)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/03
05.100/2009-10, dated 21st January, 2010.

6. “The Global Trust Bank Ltd.” excluded by Notification DBOD. No. PSBS.BC.42116. 01.129/ 2004-05, dated 15th September,

2004 (w.e.f. 20-11-2004).

7. “Godavari Grameena Bank, Rajahmundry (Andhra Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

8. “Golconda Gramin Bank, Hyderabad (Andhra Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

9. “Gomati Gramin Bank, Jaunpur (Uttar Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

10. “GopalganjKshetriyaGramin Bank, Gopalganj (Bihar)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/03
05.100/2009-10, dated 21st January, 2010.

11. “Gorakhpur KshetriyaGramin Bank, Gorakhpur, Uttar Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No.

7431/03.05.100/2008-09, dated 27th January, 2009.

12. Included by RBI Notification No. RPCD.CO. RRB. No. 55/03.05.100/2013-14, dated 14th November, 2013.
13. “Gurdaspur Amritsar KshetriyaGraminVikas Bank, Gurdaspur (Punjab)” excluded by RBI Notification No. RPCD.CO. RRB.

No. 3230/03.05.100/2008-09, dated 22nd September, 2008.

14. “Gwalior DatiaKshetriyaGramin Bank, Datia (Madhya Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

7812-B/03-05.100/2009-10, dated 21st January, 2010.


-----

HDFC Bank Ltd. (1995).

Habib Bank Ltd.

1*  -  -  -  
2*  -  -  -  
Hardoi-UnnaoGramin Bank, Hardoi (Uttar Pradesh).

3[Haryana Gramin Bank, Rohtak (Haryana).]

4*  -  -  -  
Haryana State Co-operative Bank Ltd., Ambala City, with Headquarters at Chandigarh.

5*  -  -  -  
6[Himachal Pradesh Gramin Bank Mandi, Himachal Pradesh.]

7*  -  -  -  
8*  -  -  -  
Hindustan Commercial Bank Ltd., Cawnpore.

9*  -  -  -  
Hongkong and Shanghai Banking Corporation.

10*  -  -  -  
11[HSBC Bank Oman S.A.O.G.]

ICICI Bank Ltd.

12[IDBI Bank Limited.]

Indian Bank, Madras.

13
[Indian Mercantile Co-operative Bank Ltd., 26-A, Cantonment Road, Lucknow-226001 (Uttar
Pradesh) (w.e.f. 3-11-2001).]

Indian Overseas Bank, Madras.

14*  -  -  -  
1. “HadotiKshetriyaGramin Bank, Kota, Rajasthan” excluded by RBI Notification No. RPCD.CO. RRB. No. 56/03.05.100/2013
14, dated 14th November, 2013.

2. “Hamil Bank” excluded by Notification IBS. 571/23.13.086/99-2000, dated 28th August, 1999. Earlier Hamil Bank was

inserted by Notification No. DBOD. No. 2090/23.13.086/96-97, dated 12th June, 1997.

3. Included by RBI Notification No. RPCD.CO. RRB. No. 3231/03.05.100/2008-09, dated 22nd September, 2008.
4. “Haryana KshetriyaGramin Bank, Bhiwani (Haryana)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

5. “HazaribaghKshetriyaGramin Bank, Hazaribagh (Bihar)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/03
05.100/2009-10, dated 21st January, 2010.

6. Included by RBI Notification No. RPCD.CO. RRB. No. 55/03.05.100/2013-14, dated 14th November, 2013.
7. “Himachal Gramin Bank, Mandi, Himachal Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No.

56/03.05.100/2013-14, dated 14th November, 2013.

8. “HindonGramin Bank, Ghaziabad (Uttar Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. BC. No.

95/03.05.100/2013-14, dated 9th April, 2014.

9. “Hissar-SirsaKshetriyaGramin Bank, Hissar (Haryana)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

10. “Howrah Gramin Bank, Howrah (West Bengal)” excluded by RBI Notification No. RPCD.CO. RRB. BC. No.

95/03.05.100/2013-14, dated 9th April, 2014.

11. Subs. by RBI Notification No. DBOD.IBD. No. 4591/23.13.030/2012-13, dated 26th September, 2012, for “Oman

International Bank S.A.O.G.”.

12. Subs. by Notification DBOD.BP.BC.No. 21.01.002/2007-08, dated 16th May, 2008, for "Industrial Development Bank of

India Limited" (w.r.e.f. 7-5-2008).

13. Included by Notification No. UBD.10.BR./16-05.00/2001-2003, dated 26th September, 2001.
14. “Indore-Ujjain KshitriyaGramin Bank, Ujjain (Madhya Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.


-----

1*  -  -  -  
2[ING Vyasa Bank Ltd., Bangalore City.]

IndusInd Bank Limited (1994).

International Nederlanden Bank N.V. (1994).

3*  -  -  -  
4*  -  -  -  
JalgaonJantaSahakari Bank Ltd., Jalgaon (Maharashtra) (w.e.f. 29-1-2000).

Jammu and Kashmir Bank Ltd., Srinagar.

5*  -  -  -  
6[J & K Grameen Bank, Jammu & Kashmir.]

7*  -  -  -  
8*  -  -  -  
JanakalvanSahakari Bank Ltd., Chembur, Mumbai (1998).

Janalaxmi Co-operative Bank Ltd., Nashik (Maharashtra) (w.e.f. 29-1-2000)

JanataSahakari Bank Ltd., Pune.

9*  -  -  -  
10[Jharkhand Gramin Bank, Ranchi (Jharkhand)].

11[JP Morgan Chase Bank National Association].

12[JSC VTB Bank.]

13*  -  -  -  
Ka Bank NongkyndongRiKhasiJaintia (Meghalaya) (1981).

14*  -  -  -  
15*  -  -  -  
1. “ING Bank NV” excluded by Notification No. IBD.616/23.13.017/2005-06, dated 28th October, 2005.
2. Subs. by Notification No. PSBS.596/16.01.077/2002-03, 21st November, 2002, for "ING Vyasa Bank"
3. “Jaipur NagaurAnchalikGramin Bank, Jaipur (Rajasthan)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

4. “Jaipur TharGramin Bank, Jaipur (Rajasthan)” excluded by RBI Notification No. RPCD.CO. RRB. BC. No. 77/03.05.100/2013
14, dated 27th January, 2014. Earlier it was included by RBI Notification No. RPCD.CO. RRB. No. 3231/03.05.100/2008-09,
dated 22nd September, 2008. 'CD.

5. “Jammu Rural Bank, Jammu (Jammu & Kashmir)” excluded by RBI Notification No. RPCD.CO. RRB. No.

11379/3.5.100/2010-11, dated 31st March, 2011.

6. Included by RBI Notification No. RPCD.CO. RRB. No. 11377/3.5.100/2010-11, dated 31st March, 2011.
7. “Jamnagar Gramin Bank, Jamnagar (Gujarat) (1978)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

8. “JamunaGramin Bank, Agra (Uttar Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No. 3230/03.05.100/2008
09, dated 22nd September, 2008.

9. “Jhabua-DharKshetriyaGramin Bank, Jhabua, Madhya Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No.

56/03.05.100/2013-14, dated 14th November, 2013.

10. Included by RBI Notification No. RPCD.CO. RRB. No. 7812-A/03-05.100/2009-10, dated 21st January, 2010.
11. Subs. by Notification No. Ret. BC. 70/12.06.090/2004-05, dated 4th February, 2005, for “JP Morgan Chase Bank”.
12. Included by RBI Notification No. DBOD.IBD. No. 2091/23.13.126/2008-09, dated 30th July, 2008.
13. “Junagadh-AmreliGramin Bank, Junagadh (Gujarat)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

14. “KakathiyaGrameena Bank, Warangal (Andhra Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

15. “KalahandiAnchalikaGramya Bank, Bhawanipatna (Orissa)” excluded by RBI Notification No. RPCD.CO. RRB. No.

11379/3.5.100/2010-11, dated 31st March, 2011.


-----

1[KallappannaAwadeIchalkaranjiJanataSahakari Bank Ltd., Ichalkaranji].

2*  -  -  -  
Kalupur Commercial Co-operative Bank Ltd., Ahmedabad.

KalyanJantaSahakari Bank Ltd., Kalyan (Maharashtra) (w.e.f. 29-1-2000).

Kamani Industrial Bank.

3*  -  -  -  
4*  -  -  -  
5*  -  -  -  
Kapol Co-operative Bank Ltd., Mumbai (1998).

6*  -  -  -  
Karad Urban Co-operative Bank Ltd., Karad (Maharashtra) (w.e.f. 29-1-2000).

Karbi N.C. Rural Bank, Diphu (Assam) (1982).

Karnataka Bank Ltd., Mangalore.

Karnataka State Co-operative Bank Ltd., Bangalore.

7[Karnataka VikasGrameena Bank, Dharwad (Karnataka).]

KarurVysya Bank Ltd.

7[KashiGomtiSamyutGramin Bank, Varanasi (Uttar Pradesh).]

8*  -  -  -  
9[KaveriGrameen Bank, Mysore, Karnataka.]

10[Kerala Gramin Bank, Malappuram, Kerala.]

Kerala State Co-operative Bank Ltd., Trivandrum.

Khamgaon Urban Co-operative Bank Ltd., Khamgaon (Maharashtra) (w.e.f.22-5-1999).

KhasiJaintia Rural Bank, Shillong (Meghalaya).

11*  -  -  -  
12*  -  -  -  
1. Subs. by Notification No. UBD.CO.BPD.8/16.05.000/2006-07, datd 21st May, 2007, for “IchalkaranjiJanataSahakari Bank

Ltd., Ichalkaranji”.

2. “KalpatharuGrameena Bank, Tumkur (Andhra Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

3. “Kamraz Rural Bank, Sopore (Jammu & Kashmir)” excluded by RBI Notification No. RPCD.CO. RRB. No.

1137[9]/3.5.100/2010-11, dated 31st March, 2011.

4. “KanakadurgaGramin Bank, Gudivada (Andhra Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

5. “KanakadurgaGramin Bank, Gudivada (Andhra Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

6. “KapurthalaFirozpurKshetriyaGramin Bank, Kapurthala (Punjab)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

7. Included by RBI Notification No. RPCD.CO. RRB. No. 3231/03.05.100/2008-09, dated 22nd September, 2008.
8. “KashiGramin Bank, Varanasi (Uttar Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

9. Included by RBI Notification No. RPCD.CO. RRB. No. 46/03.05.100/2013-14, dated 22nd October 2013.
10. Included by RBI Notification No. RPCD.CO. RRB. BC No. 98/03.05.100/2013-14, dated 8th May, 2014.
11. “KissanGramin Bank, Budaun, Uttar Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No.

7431/03.05.100/2008-09, dated 27th January, 2009.

12. “KolarGramin Bank, Kolar (Karnataka)” excluded by RBI Notification No. RPCD.CO. RRB. No. 3230/03.05.100/2008-09,

dated 22nd September, 2008.


-----

1*  -  -  -  
2*  -  -  -  
3*  -  -  -  
KrishnaramBaldeo Bank (Private) Ltd., Gwalior.

Krung Thai Bank Public Company Limited (25-1-1997).

4*  -  -  -  
5*  -  -  -  
Kumbakonam City Union Bank Ltd.

6*  -  -  -  
7*  -  -  -  
Lakshmi Commercial Bank Ltd.

Lakshmi Vilas Bank Ltd., Karur.

LangpiDehangi Rural Bank, Diphu (Assam).

8*  -  -  -  
9*  -  -  -  
10*  -  -  -  
11*  -  -  -  
12[Madhya Bihar Gramin Bank, Patna (Bihar).]

Madhya Pradesh RajyaSahakari Bank Maryadit, Jabalpur.

13[MadhyanchalGramin Bank, Sagar, Madhya Pradesh.]

14*  -  -  -  
1. “KoraputPanchabatiGramya Bank, Jeypore (Orissa)” excluded by RBI Notification No. RPCD.CO. RRB. No.

11379/3.5.100/2010-11, dated 31st March, 2011.

2. “KosiKshetriyaGramin Bank, Purnea (Bihar)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/03
05.100/2009-10, dated 21st January, 2010.

3. “Krishna Grameena Bank, Gulbarga (Karnataka)” excluded by RBI Notification No. RPCD.CO. RRB. BC. No.

99/03.05.100/2013-14, dated 8th May, 2014.

4. “KshetriyaGramin Bank, Hoshangabad (Madhya Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812
B/03-05.100/2009-10, dated 21st January, 2010.

5. “KshetriyaKisanGramin Bank, Mainpuri, Uttar Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No.

56/03.05.100/2013-14, dated 14th November, 2013.

6. “Kutch Gramin Bank, Bhuj (Gujarat)” excluded by RBI Notification No. RPCD.CO. RRB. No. 3230/03.05.100/2008-09, dated

22nd September, 2008.

7. “LakhimiGaonlia Bank, Golaghat, Assam” excluded by RBI Notification No. RPCD.CO. RRB. No. 7431/03.05.100/2008-09,

dated 27th January, 2009.

8. “Lord Krishna Bank” excluded by Notification DBOD. No. PSBD.2536/16.01.130/2007-08, dated 6th September, 2007.
9. “LucknowKshetriyaGramin Bank, Sitapur (Uttar Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

11379/3.5.100/2010-11, dated 31st March, 2011. Earlier it was included by RBI Notification No. RPCD.CO. RRB. No.
3231/03.05.100/2008-09, dated 22nd September; 2008.

10. “MadhubaniKshetriyaGramin Bank, Madhubani (Bihar)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812
B/03-05.100/2009-10, dated 21st January, 2010.

11. “Madhya Bharat Gramin Bank, Sagar, Madhya Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No.

56/03.05.100/2013-14, dated 14th November, 2013. Earlier it was included by RBI Notification No. RPCD.CO. RRB.
No. 3231/03.05.100/2008-09, dated 22nd September, 2008.

12. Included by RBI Notification No. RPCD.CO. RRB. No. 3231/03.05.100/2008-09, dated 22nd September, 2008.
13. Included by RBI Notification No. RPCD.CO. RRB. No. 55/03.05.100/2013-14, dated 14th November, 2013.
14. “MagadhGramin Bank, Gaya (Bihar)” excluded by RBI Notification No. RPCD.CO. RRB. No. 3230/03.05.100/2008-09,

dated 22nd September, 2008.


-----

1*  -  -  -  
2*  -  -  -  
3[Maharashtra Gramin Bank, Maharashtra.]

Maharashtra State Co-operative Bank Ltd., Bombay.

4*  -  -  -  
5*  -  -  -  
MalwaGramin Bank, Sangrur (Punjab).

6*  -  -  -  
7*  -  -  -  
Manipur Rural Bank, Imphal (Manipur).

8*  -  -  -  
Mapusa Urban Co-operative Bank of Goa Ltd., Mapusa (Goa).

9*  -  -  -  
10*  -  -  -  
11[MarudharaGramin Bank, Jodhpur, Rajasthan.]

12*  -  -  -  
13*  -  -  -  
14*  -  -  -  
Mehasana Urban Co-operative Bank Ltd., Mahsana (Gujarat) (w.e.f. 29-1-2000).

MellabhumGramin Bank, Bankura (1976).

MewarAnchalikGramin Bank, Udaipur (Rajasthan).

1. “MahakaushalKshetriyaGramin Bank, Narsinghpur, Madhya Pradesh” excluded by RBI Notification No. RPCD.CO.

RRB. No. 56/03.05.100/2013-14, dated 14th November, 2013.

2. “Maharashtra Godavari Gramin Bank, Aurangabad, Maharashtra” excluded by RBI Notification No. RPCD.CO. RRB.

No. 11379/3.5.100/2010-11, dated 31st March, 2011. Earlier it was included by RBI Notification No. RPCD.CO. RRB.
No. 7430/03.05.100/2008-09, dated 27th January, 2009.

3. Included by RBI Notification No. RPCD.CO. RRB. No. 11377/3.5.100/2010-11, dated 31st March, 2011.
4. “MalaprabhaGrameena Bank, Dharwar (Karnataka)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

5. “MallabhumGramin Bank, Bankura (West Bengal)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/03
05.100/2009-10, dated 21st January, 2010.

6. “MandlaBalaghatKshetriyaGramin Bank, Mandla (Madhya Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

7812-B/03-05.100/2009-10, dated 21st January, 2010.

7. “Mandvi Co-operative Bank Ltd., Mumbai” excluded by Notification No. UBD/CO/BSD(SCB) No. 01/12.22.136/2007-08,

dated 1st November, 2007.

8. “ManjiraGrameena Bank, Sangareddy, Medak (Andhra Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

9. “MarathwadaGramin Bank, Nanded (Maharashtra)” excluded by RBI Notification No. RPCD.CO. RRB. No.

11379/3.5.100/2010-11, dated 31st March, 2011.

10. “MarudharKshetriyaGramin Bank, Churu (Rajasthan)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/03
05.100/2009-10, dated 21st January, 2010.

11. Included by RBI Notification No. RPCD.CO. RRB. BC. No. 76/03.05.100/2013-14, dated 27th January, 2014.
12. “MarwarGanganagar Bikaner Gramin Bank, Pali, Rajasthan” excluded by RBI Notification No. RPCD.CO. RRB. BC.

No. 77/03.05.100/2013-14, dated 27th January, 2014. Earlier it was included by RBI Notification No. RPCD.CO. RRB.
No. 7430/03.05.100/2008-09, dated 27th January, 2009.

13. “MarwarGramin Bank, Pali, Rajasthan” excluded by RBI Notification No. RPCD.CO. RRB. No. 7431/03.05.100/2008-09,

dated 27th January, 2009.

14. “MayurakshiGramin Bank, Suri (West Bengal)” excluded by RBI Notification No. RPCD.CO. RRB. BC. No.

95/03.05.100/2013-14, dated 9th April, 2014.


-----

Miraj State Bank Ltd.

1*  -  -  -  
Mitsui Bank Ltd.

Mizoram Rural Bank (Mizoram).

2*  -  -  
3*  -  -  -  
4*  -  -  -  
Nadar Bank, Tuticorin.

5*  -  -  -  
Nagaland Rural Bank, Kohima (Nagaland).

Nagar Urban Co-operative Bank Ltd., Ahmednagar (Maharashtra) (w.e.f. 29-1-2000).

6*  -  -  -  
Nagpur NagrikSahakari Bank Ltd., Nagpur (Maharashtra) (w.e.f. 22-5-1999).

7*  -  -  -  
Nainital Bank Ltd.

8*  -  -  -  
9[Narmada JhabuaGramin Bank, Indore, Madhya Pradesh].

10*  -  -  -  
11[National Bank of Abu Dhabi PJSC]

National Bank of Pakistan.

12*  -  -  -  
13*  -  -  -  
14*  -  -  -  
1. “MithilaKshetriyaGramin Bank, Darbhanga (Bihar)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/03
05.100/2009-10, dated 21st January, 2010.

2. “MonghyrKshetriyaGramin Bank, Monghyr (Bihar)” excluded by RBI Notification No. RPCD.CO. RRB. No.

7812-B/03-05.100/2009-10, dated 21st January, 2010.

3. “MurshidabadGramin Bank, Berhampore (West Bengal)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/03
05100/2009-10, dated 21st January, 2010.

4. “MuzaffarnagarKshetriyaGramin Bank, Muzaffarnagar (Uttar Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB.

BC. No. 95/03.05.100/2013-14, dated 9th April, 2014.

5. “Nadia Gramin Bank, Krishnagar (West Bengal)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/03
05.100/2009-10, dated 21st January, 2010.

6. “NagarjunaGrameena Bank, Khammam (Andhra Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

7. “NainitalAlmoraKshetriyaGramin Bank, Nainital, Uttarakhand” excluded by RBI Notification No. RPCD.CO. RRB. No.

56/03.05.100/2013-14, dated 14th November, 2013.

8. “NalandaGramin Bank, Biharshariff (Bihar)” excluded by RBI Notification No. RPCD.CO. RRB. No. 3230/03.05.100/2008
09, dated 22nd September, 2008.

9. Included by RBI Notification No. RPCD.CO. RRB. No. 55/03.05.100/2013-14, dated 14th November, 2013.
10. “Narmada MalwaGramin Bank, Indore, Madhya Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No.

56/03.05.100/2013-14, dated 14th November, 2013. Earlier it was included by RBI Notification No. RPCD.CO. RRB. No.
3231/03.05.100/2008-09, dated 22nd September, 2008.

11. Included by RBI Notification No. DBR.IDB. No. 5196/23.03.030/2015-16, dated 26th October, 2015.
12. “Nedungadi Bank Ltd.” excluded by Notification No. DBOD. No. PSB. 1326/16.01.070/200320004, dated 1st July, 2003.
13. “NetravatiGrameena Bank, Mangalore (Karnataka)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

14. “New Bank of India, New Delhi”, omitted by Notification No. DBOD. No. 344/Escl/ 16:19:001/93, dated 8th October, 1993.


-----

1*  -  -  -  
2*  -  -  -  
3[NKGSB Co-operative Bank Ltd., Mumbai].

4*  -  -  -  
NutanNagarikShakari Bank Ltd., Ahmedabad (Gujrat) (w.e.f. 29-1-2000).

5[OdishaGramya Bank, Bhubaneswar, Odisha.]

Oriental Bank of Commerce.

Orissa State Co-operative Bank Ltd., Cuttack.

6*  -  -  -  
7*  -  -  -  
PalamauKshetriyaGramin Bank, Daltonganj (Bihar).

PallavanGrama Bank, Salem (Tamil Nadu).

8*  -  -  -  
Pandyan Bank

PandyanGrama Bank, Sattur (Tamil Nadu).

ParsikJanataSahakari Bank Ltd., Thane (1998).

Parur Central Bank Ltd.

9*  -  -  -  
10[PaschimBangaGramin Bank, Howrah, West Bengal.]

11*  -  -  -  
12*  -  -  -  
13*  -  -  -  
Pondicherry State Cooperative Bank Ltd. (w.e.f. 20-7-1995).

1. “NeelachalGramya Bank, Bhubneshwar, Orissa” excluded by RBI Notification No. RPCD.CO. RRB. No. 47/03.05.100/2013
14, dated 22nd October 2013. Earlier it was included by RBI Notification No. RPCD.CO. RRB. No. 7812-A/03-05.100/200910, dated 21st January, 2010.

2. “NimarKshetriyaGramin Bank, Khargone (Madhya Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

3. Subs. by Notification No. UBD. CO.1/16.05.000/2005-2006, dated 24th January, 2006, for "North Kanara GSB Co-operative

Bank Ltd., Mumbai, Maharashtra".

4. “North Malabar Gramin Bank, Kanpur, Kerala” excluded by RBI Notification No. RPCD.CO. RRB. BC. No.

99/03.05.100/2013-14, dated 8th May, 2014.

5. Included by RBI Notification No. RPCD.CO. RRB. No. 46/03.05.100/2013-14, dated 22nd October 2013.
6. “The Overseas-Chinese Banking Corporation Limited” excluded by Notification No. Ret. BC. No. 65/12.06.110/2003-04,

dated 5th February, 2004.

7. “PalamauKshetriyaGramin Bank, Daltonganj (Jharkhand)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812
B/03-05.100/2009-10, dated 21st January, 2010.

8. “PanchamahalGramin Bank, Godhra (Gujarat)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

9. “ParvatiyaGramin Bank, Chamba, Himachal Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No.

56/03.05.100/2013-14, dated 14th November, 2013.

10. Ins. by RBI Notification No. RPCD.CO. RRB. BC. No. 94/03.05.100/2013-14, dated 9th April, 2014.
11. “PatliputraGramin Bank, Patna (Bihar)" excluded by RBI Notification No. RPCD.CO. RRB. No. 3230/03.05.100/2008-09,

dated 22nd September, 2008.

12. “PinakiniGrameena Bank, Nellore (Andhra Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

13. “PithoragarhKshetriyaGramin Bank, Pithoragrah (Uttaranchal)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.


-----

1*  -  -  -  
2*  -  -  -  
3[Pragthi Krishna Gramin Bank, Bellary, Karnataka.]

4[PraharaSahakari Bank Ltd., Loni Dist., Ahmednagar (Maharashtra).]

5*  -  -  -  
Prathama Bank, Moradabad (Uttar Pradesh).

Punjab and Maharashtra Co-operative Bank Ltd., Mumbai (Maharashtra) (w.e.f.29-1-2000).

Punjab and Sind Bank, Amritsar.

Punjab Co-operative Bank Ltd., Amritsar.

6[Punjab Gramin Bank, Kapurthala (Punjab).]

Punjab National Bank.

Punjab State Co-operative Bank Ltd., Chandigarh.

Purbanchal Bank Ltd., Gauhati.

7*  -  -  -  
8[Purvanchal Bank, Gorakhpur, Uttar Pradesh.]

9*  -  -  -  
10*  -  -  -  
11*  -  -  -  
12*  -  -  -  
Rajasthan State Co-operative Bank Ltd., Jaipur.

13*  -  -  -  
Rajkot NagrikSahakari Bank Ltd., Bombay.

1. “PragathiGramin Bank, Belary (Karnatak)” excluded by RBI Notification No. RPCD.CO. RRB. BC. No. 99/03.05.100/2013
14, dated 8th May, 2014. Earlier it was included by RBI Notification No. RPCD.CO. RRB. No. 3231/03.05.100/2008-09,
dated 22nd September, 2008.

2. “Prag'yotishGaonlia Bank, Nalbari, Assam” excluded by RBI Notification No. RPCD.CO. RRB. \To. 7431/03.05.100/2008-09,

dated 27th January, 2009.

3. Included by RBI Notification No. RPCD.CO. RRB. BC No. 98/03.05.100/2013-14, dated 8th May, 2014.
4. Included by Notification No. UBD.CO/BP/22 /16.05.00/2002-2003, dated 3rd March, 2003.
5. “PratapgarhKshetriyaGramin Bank, Pratapgarh, Uttar Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No.

7431/03.05.100/2008-09, dated 27th January, 200g.

6. Included by RBI Notification No. RPCD.CO. RRB. No. 3231/03.05.100/2008-09, dated 22nd September, 2008.
7. “PuriGramya Bank, Pipli (Orissa)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/03-05.100/2009-10, dated

21st January, 2010.

8. Included by RBI Notification No. RPCD.CO. RRB. No. 46/03.05.100/2013-14, dated 22nd October 2013.
9. “PurvanchalGramin Bank, Gorakhpur, Uttar Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No.

47/03.05.100/2013-14, dated 22nd October 2013. Earlier it was included by RBI Notification No. RPCD.CO. RRB.
No. 7430/03.05.100/2008-09, dated 27th January, 2009.

10. “RaebareliKshetriyaGramin Bank, Raebareli, Uttar Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No.

7431/03.05.100/2008-09, dated 27th January, 2009.

11. “RaigarhKshetriyaGramin Bank, Raigarh, Madhya Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No.

7431/03.05.100/2008-09, dated 27th January, 2009.

12. “Rajasthan Gramin Bank, Alwar, Rajasthan” excluded by RBI Notification No. RPCD.CO. RRB. No. 56/03.05.100/2013-14,

dated 14th November, 2013. Earlier it was included by RBI Notification No. RPCD.CO. RRB. No. 3231/03.05.100/2008-09,
dated 22nd September, 2008.

13. “RajgarhSehoreKshetriyaGramin Bank, Rajgarh (Madhya Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.


-----

1*  -  -  -  
2*  -  -  -  
3*  -  -  -  
4*  -  -  -  
Ratnakar Bank Ltd., Kolhapur.

5*  -  -  -  
6*  -  -  -  
7[Royal Bank of Scotland N.V.]

Rupee Co-operative Bank Ltd., Pune.

8*  -  -  -  
9*  -  -  -  
Sakma Bank Limited (1992).

10*  -  -  -  
11*  -  -  -  
12*  -  -  -  
13*  -  -  -  
14*  -  -  -  
15*  -  -  -  
Sangli Urban Co-operative Bank Ltd., Sangli.

1. “Ranchi KshetriyaGramin Bank, Ranchi (Bihar)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/03
05.100/2009-10, dated 21st January, 2010.

2. “Rani LaxmiBaiKshetriyaGramin Bank, Jhansi, Uttar Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No.

7431/03.05.100/2008-09, dated 27th January, 2009.

3. “RatlamMandsaurKshetriyaGramin Bank, Mandsaur (Madhya Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB.

No. 7812-B/03-05.100/2009-10, dated 21st January, 2010.

4. “RatnagiriSindhudurgGramin Bank, Ratnagiri (Maharashtra)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812
B/03-05.100/2009-10, dated 21st January, 2010.

5. “RayalaseemaGrameena Bank, Cuddapah (Andhra Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

6. “RewaSidhiGramin Bank, Rewa Madhya Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No.

56/03.05.100/2013-14, dated 14th November, 2013.

7. Subs. by Notification No. DBOD.IBD. No. 16083/23.13.020/2009-10, dated 19th March, 2010, for the words "ABN Amro

Bank N.V.".

8. “RushikulyaGramya Bank, Berhampur, Orissa” excluded by RBI Notification No. RPCD.CO. RRB. No. 47/03.05.100/2013
14, dated 22nd October 2013.

9. “Sabarkantha-GandhinagarGramin Bank, Himatnagar (Gujarat)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

10. “SagarGramin Bank, Amtala (West Bengal)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/03
05.100/2009-10, dated 21st January, 2010.

11. “SahyadriGramin Bank, Shimoga (Karnataka)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

12. “SamastipurKshetriyaGramin Bank, Samastipur, Bihar” excluded by RBI Notification No. RPCD.CO. RRB. No.

56/03.05.100/2013-14, dated 14th November, 2013.

13. “SamyutKshetriyaGramin Bank, BelisaAzamgarh (Uttar Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

14. “SangameswaranGrameena Bank, Mehboob Nagar (Andhra Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

15. “The Sangli Bank Ltd” excluded by Notification DBOD. No. PSBD.11188/16.01.073/2006-07, dated 14th May, 2007.


-----

1*  -  -  -  
2[SaptagiriGrameena Bank, Chitoor (Andhra Pradesh).]

3*  -  -  -  
Saraswat Co-operative Bank Ltd., Bombay.

4*  -  -  -  
SardarBhiladwallaPardi People’s Co-operative Bank Ltd., KillaPardi, District Valsad (Gujarat)
(w.e.f.29-1-2000).

5[Sarva Uttar Pradesh Gramin Bank, Meerut, Uttar Pradesh.]

6*  -  -  -  
2[SaurashtraGramin Bank, Rajkot (Gujarat).]

7[Sber Bank]]

8*  -  -  -  
9*  -  -  -  
ShamraoVithal Co-operative Bank Ltd., Bombay.

10*  -  -  -  
11*  -  -  -  
ShikshakSahakari Bank Ltd., Nagpur (Maharashtra) (w.e.f. 22-5-1999).

12[Shinhan Bank]

13*  -  -  -  
14*  -  -  -  
15*  -  -  -  
[1. “SanthalParganasGramin Bank, Dumka (Jharkhand)” excluded by RBI Notification No. RPCD. CO. RRB. No. 7812-B/03-](http://rpcd.co/)

05.100/2009-10, dated 21st January, 2010.

2. Included by RBI Notification No. RPCD.CO. RRB. No. 3231/03.05.100/2008-09, dated 22nd September, 2008.
3. “Saran KshetriyaGramin Bank, Chapra (Bihar)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/03
05.100/2009-10, dated 21st January, 2010.

4. “SarayuGramin Bank, (Lakhimpur) (Uttar Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

5. Included by RBI Notification No. RPCD.CO. RRB. No. 7430/03.05.100/2008-09, dated 27th January, 2009.
6. “Satpura Narmada KeshtriyaGramin Bank, Chhindwara, Madhya Pradesh” excluded by RBI Notification No. RPCD.CO.

RRB. No. 56/03.05.100/2013-14, dated 14th November, 2013. Earlier it was included by RBI Notification No. RPCD.CO.
RRB. No. 7812-A/03-05.100/ 2009-10, dated 21st January, 2010.

7. Included by RBI Notification No. DBOD.IBD. No. 13982/23.03.022/2010-11, dated 8th March, 2011.
8. “ShahadolKshetriyaGramin Bank, Shahadol (Madhya Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

7812-B/03-05.100/2009-10, dated 21st January, 2010.

9. “ShahjahanpurKshetriyaGramin Bank, Shahjahanpur, Uttar Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No.

7431/03.05.100/2008-09, dated 27th January, 2009.

10. “ShardaGramin Bank, Satna, Madhya Pradesh" excluded by RBI Notification No. RPCD.CO. RRB. No. 56/03.05.100/2013
14, dated 14th November, 2013.

11. “ShekhawatiGramin Bank, Sikar (Rajasthan)” excluded by RBI Notification No. RPCD.CO. RRB. No. 3230/03.05.100/2008
09, dated 22nd September, 2008.

12. Name of “Chohung Bank” changed to "Shinhan Bank" by Notification DBOD. No. IBD.114/ 23.13.072/2006-07, dated 25th

July, 2006 (w.e.f. 12-8-2006).

13. “ShivalikKshetriyaGramin Bank, Hoshiarpur (Punjab)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

14. “ShivpuriGunaKshetriyaGramin Bank, Shivpuri (Madhya Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

15. “ShreyasGramin Bank, Aligarh, Uttar Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No. 56/03.05.100/2013
14, dated 14th November, 2013. Earlier it was included by RBI Notification No. RPCD.CO. RRB. No. 3231/03.05.100/200809, dated 22nd September, 2008.


-----

1*  -  -  -  
2*  -  -  -  
Siam Commercial Bank Public Company Limited (1996).

3*  -  -  -  
4*  -  -  -  
5*  -  -  -  
SolapurJantaSahakari Bank Ltd., Solapur- 413007 (Maharashtra) (w.e.f. 1-6-2002).

6[Sonali Bank Limited.]

South Indian Bank Ltd.

7*  -  -  -  
South Malabar Gramin Bank, Cannonore (1976).

8*  -  -  -  
9*  -  -  -  
10*  -  -  -  
11*  -  -  -  
12*  -  -  -  
13*  -  -  -  
Standard Chartered Bank.

State Bank of Bikaner & Jaipur.

State Bank of Hyderabad.

State Bank of India.

14*  -  -  -  
1. “ShriSathavahanaGrameena Bank, Karimnagar (Andhra Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

2. “ShriVenkateswaraGrameena Bank, Chittoor (Andhra Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

3. “SinghbumKshetriyaGramin Bank, Chaibasa (Bihar)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/03
05.100/2009-10, dated 21st January, 2010.

4. “SiwanKshetriyaGramin Bank, Siwan (Bihar)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/03
05.100/2009-10, dated 21st January, 2010.

5. “SolapurGramin Bank, Solapur (Maharashtra)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/03
05.100/2009-10, dated 21st January, 2010.

6. Subs. by Notification DBOD/BD No. 10730/23/23.13.032/2007-08, dated 7th February, 2008, for "Sonali Bank".
7. “South Malabar Gramin Bank, Malappuram (Kerala)” excluded by RBI Notification No. RPCD.CO. RRB. BC. No.

99/03.05.100/2013-14, dated 8th May, 2014.

8. “SravasthiGramin Bank, Bahraich (Uttar Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

9. “SreeAnanthaGrameena Bank, Anantpur (Andhra Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

10. “Sri SaraswatiGrameena Bank, Adilabad (Andhra Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

11. “Sri VisakhaGrameena Bank, Srikakulam (Andhra Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

12. “SriganganagarKshetriyaGramin Bank, Sriganganagar, Rajasthan” excluded by RBI Notification No. RPCD.CO. RRB. No.

7431/03.05.100/2008-09, dated 27th January, 2008

13. “SriramaGramin Bank, Nizamabad (Andhra Pradesh)” excluded by RBI Notifi No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

14. “State Bank of Indore” excluded by RBI Notification No. DBOD No. Ret. BC. 37/12.06.004/ 2010-11, dated 27th August,

2010 (w.e.f. 26-8-2010).


-----

State Bank of Jaipur

State Bank of Mysore.

State Bank of Patiala.

1*  -  -  -  
State Bank of Travancore.

2*  -  -  -  
3*  -  -  -  
4[Sumitomo Mitsui Banking Corporation.]

5*  -  -  -  
Surat Peoples Co-operative Bank Ltd., Surat.

6*  -  -  -  
7*  -  -  -  
Syndicate Bank.

8[Sberbank.]

Tamil Nadu State Co-operative Bank Ltd., Madras.

Tamilnad Mercantile Bank Ltd.

Tanjore Permanent Bank Ltd., Tanjore.

9[Thane Bharat Sahakari Bank Ltd. Thane Maharashtra.]

10*  -  -  -  
11*  -  -  -  
Times Bank Limited (1995).

12[TJSB Sahakari Bank Ltd.]

Traders’ Bank Ltd.

Travancore Bank Ltd., Trivandrum Taluk.

Tripura Gramin Bank, Agartala (Tripura).

1. “State Bank of Saurashtra” excluded by RBI Notification No. DBDD. No. Ref. BC 49/ 12.06.00[7]/2008-09, dated 16th October,

2008 (w.e.f. 13-8-2008).

2. “SubansiriGaonlia Bank, North Lakhimpur, Assam” excluded by RBI Notification No. RPCD.CO. RRB. No.

7431/03.05.100/2008-09, dated 27th January, 2009.

3. “SultanpurKshetriyaGramin Bank, Sultanpur, Uttar Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No.

7431/03.05.100/2008-09, dated 27th January, 2009.

4. Included by RBI Notification No. DBOD.IBD. No. 49808/23.13.155/2012-13, dated 9th January, 2013. Earlier it was excluded

by Notification DBOD. No. IBS.1186/23.13.018/2004-05, dated 1st March, 2005 (w.e.f. 19-3-2005).

5. “Surat-Bharuch Gramin Bank, Baruch (Gujarat)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

6. “Surendranagar Bhavnagar Gramin Bank, Surendranagar (Gujarat)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

7. “SurgujaKshetriyaGramin Bank, Ambikapur, Chhattishgarh” excluded by RBI Notification No. RPCD.CO. RRB. BC. No.

99/03.05.100/2013-14, dated 8th May, 2014.

8. Included by Notification No. DBOD.IBD. No. 13982/23.03.022/2010-11, dated 8th March, 2011.
9. Included by Notification No. UBD.CO/BP/20/16.05.00/2002-2003, dated 23rd January, 2003.
10. “Thane Gramin Bank, Thane, Maharashtra” excluded by RBI Notification No. RPCD.CO. RRB. No. 7431/03.05.100/2008
09, dated 27th January, 2009.

11. “Thar-AnchalikGramin Bank, Jodhpur (Rajasthan)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

12. Subs. by RBI Notification No. UBD.CO. BPD. 2/16.05.000/2011-12, dated 3rd November, 2011, for “Thane JanataSahakari

Bank Ltd., Thane”.


-----

1*  -  -  -  
2*  -  -  -  
3*  -  -  -  
4*  -  -  -  
5*  -  -  -  
Union Bank of India.

United Bank of India.

United Commercial Bank.

United Industrial Bank Ltd., Calcutta.

6[United Overseas Bank Ltd.]

7*  -  -  -  
8[UtkalGrameen Bank, Bolangir.]

9*  -  -  -  
Uttar BangaKshetriyaGramin Bank, Cooch Behar (West Bengal).

10[Uttar Pradesh Gramin Bank, Muzaffarpur (Bihar)].

Uttar Pradesh State Co-operative Bank Ltd., Lucknow.

11[UttarakhandGramin Bank, Dehradun, Uttarakhand.]

12*  -  -  -  
13*  -  -  -  
14*  -  -  -  
15*  -  -  -  
10[VananchalGramin Bank, Dumka (Jharkhand)].

1. “TriveniKshetriyaGramin Bank, Orai (Uttar Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

11379/3.5.100/2010-11, dated 31st March, 2011. Earlier it was included by RBI Notification No. RPCD.CO. RRB. No.
3231/03.05.100/2008-09, dated 22nd September, 2008.

2. “TuisiGramin Bank, Banda (Uttar Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No. 3230/03.05.100/2008
09, dated 22nd September, 2008.

3. “The Toronto Dominion Bank” excluded by Notification No. IBS. BC. 32/23.13.004/2003-4, dated 10th October, 2003.
4. “Tungabhadra Gramin Bank, Bellary (Karnataka)" excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

5. “UFJ Bank Ltd.” excluded by Notification No. DBOD. No. IBD 947/23.03.007/2005-2006, dated 26th December, 2005.
6. Included by RBI Notification No. DBOD.IBD. No. 16919/23.03.020/2009-10, dated 26th March, 2010.
7. “United Western Bank Ltd.” excluded by Notification No. DBOD. No. PSBD.4146/16.01.076/ 2006-2007, dated 3rd

November, 2006 (w.e.f. 25-11-2006).

8. Included by RBI Notification No. RPCD.CO. RRB. No. 46/03.05.100/2013-14, dated 22nd October 2013.
9. “UtkalGramya Bank, Odisha” excluded by RBI Notification No. RPCD.CO. RRB. No. 47/ 03.05.100/2013-14, dated 22nd

October 2013. Earlier it was included by RBI Notification No. RPCD.CO. RRB. No. 11377/3.5.100/2010-11, dated 31st
March, 2011.

10. Included by RBI Notification No. RPCD.CO. RRB. No. 7812-A/03-05.100/2009-10, dated 21st January, 2010.
11. Included by RBI Notification No. RPCD.CO. RRB. No. 55/03.05.100/2013-14, dated 14th November, 2013.
12. “Uttaranchal Gramin Bank, Dehradun, Uttaranchal” excluded by RBI Notification No. RPCD.CO. RRB. No.

56/03.05.100/2013-14, dated 14th November, 2013. Earlier it was included by RBI Notification No. RPCD.CO. RRB. No.
3231/03.05.100/2008-09, dated 22nd September, 2008.

13. “VaishaliKshetriyaGramin Bank, Muzaffarpur (Bihar)” excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/03
05.100/2009-10, dated 21st January, 2010.

14. “VallalorGramin Bank, Cuddalore (Tamil Nadu)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

15. “Valsad-DangsGramin Bank, Bulsar (Gujarat)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.


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1*  -  -  -  
Vasavi Co-operative Urban Bank Ltd., Hyderabad (Andhra Pradesh) (w.e.f. 22-5-1999).

2[Vasai VikasSahakari Bank Ltd., Vasai, Thane]

3[VidharbhaKonkanGramin Bank, Nagpur, Maharashtra.]

4*  -  -  -  
5*  -  -  -  
6*  -  -  -  
Vijaya Bank, Mangalore.

7*  -  -  -  
VisakhaGrameena Bank, Srikakulam (1976).

Visa Nagar NagrikSahakari Bank Ltd., Visanagar, District Mehsana (Guajarat) (w.e.f. 29-1-2000).

8*  -  -  -  
9[Vysya Bank Ltd.], Bangalore City.

West Bengal State Co-operative Bank Ltd., Calcutta.

10*  -  -  -  
11[Westpac Banking Corporation.]

12*  -  -  -  
13[Yes Bank Limited.]

14[Zoroastrain Co-operative Bank Ltd. Mumbai-400023, Maharashtra.]

1. “VaradaGrameena Bank, Kumta (Karnataka)” excluded by RBI Notification No. RPCD.CO. RRB. No. 3230/03.05.100/2008
09, dated 22nd September, 2008.

2. Included by RBI Notification No. DCBR.CO. BPD. No. 02/16.05.000/2015-16, dated 17th December, 2015.
3. Included by RBI Notification No. RPCD.CO. RRB. No. 46/03.05.100/2013-14, dated 22nd October 2013.
4. “VidharbhaKshetriyaGramin Bank, Akola, Maharashtra” excluded by RIM Notification No. RPCD.CO. RRB. No.

47/03.05.100/2013-14, dated 22nd October 2013. Earlier it was included by RBI Notification No. RPCD.CO. RRB. No.
7430/03.05.100/2008-09, dated 27th January, 2009.

5. “Vidisha Bhopal KshetriyaGramin Bank, Vidisha, Madhya Pradesh” excluded by RBI Notification No. RPCD.CO. RRB. No.

56/03.05.100/2013-14, dated 14th November, 2013.

6. “VidurGramin Bank, Bijnor (Uttar Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. BC. No. 95/03.05.100/2013
14, dated 9th April, 2014.

7. “Vindhyavasini Gramin Bank, Mirzapur (Uttar Pradesh)” excluded by RBI Notification No. RPCD.CO. RRB. No.

3230/03.05.100/2008-09, dated 22nd September, 2008.

8. “VishveshwarayaGrameena Bank, Mandya (Karnataka)” excluded by RBI Notification No. RPCD.CO. RRB. No.

47/03.05.100/2013-14, dated 22nd October 2013.

9. Subs. by Notification No. PSBS.59[6]/16.01.67[7]/2002-2003, dated 21st November, 2002.
10. “Wainganga Krishna Gramin Bank, Solapur (Maharashtra)” excluded by RBI Notification No. RPCD.CO. RRB. No.

47/03.05.100/2013-14, dated 22nd October 2013. Earlier it was included by RBI Notification No. RPCD.CO. RRB. No.
7812-A/03-05.100/2009-10, dated 21st January, 2010.

11. Included by RBI Notification No. DBOD.IBD. No. 8297/23.13.138/2012-13, dated 10th December, 2012.
12. “Yavatmal Gramin Bank, Yavatmal, Maharashtra” excluded by RBI Notification No. RPCD.CO. RRB. No.

7431/03.05.100/2008-09, dated 27th January, 2009.

13. Included by Notification No. Ref. UBD No. BP/20/16.05.00/2002-2003, dated 23rd January, 2003.
14. Included by Notification No. PSBS.BC. 30/16.01.13/2004-05, dated 16th August, 2004.


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**THE THIRD SCHEDULE.—Omitted by the State Bank of India Act, 1955 (23 of 1955), s. 52 and**

_the Third Schedule (w.e.f. 1-7-1955)._

**THE FOURTH SCHEDULE.—Omitted by the Reserve Bank (Transfer to Public Ownership) Act,**

_1948 (62 of 1948), s. 7 and the Schedule (w.e.f 1-1-1949)._

**THE FIFTH SCHEDULE.—Rep. by the India and Burma (Burma Monetary Arrangements) Order,**

1937.

**—————**


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