The International Monetary Fund and Bank Act, 1945
# THE INTERNATIONAL MONETARY FUND AND BANK ACT, 1945
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 ARRANGEMENT OF SECTIONS
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 SECTIONS

1. Short title, extent and commencement.
2. Payments to International Fund and Bank.
3. Reserve Bank to be depository for International Fund and Bank.

3A. Reserve Bank to use, receive, acquire, etc., special drawing rights on behalf of

Central Government.

4. Power to call for information.
5. Certain provisions of Agreements to have force of law.
6. [Repealed.].
7. Power to make rules.

# THE SCHEDULE.

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# THE INTERNATIONAL MONETARY FUND AND BANK ACT, 1945[1]

 ACT NO. 47 OF 1945[1]

[24th December, 1945.]

# An [2][Act] to implement the International Monetary Fund and Bank Agreements.

WHEREAS, at the United Nations Monetary and Financial Conference held at Bretton Woods,

New Hampshire, in July, 1944, Articles of the following agreements were drawn up, and set out
in the Final Act of the said Conference that is to say,—

(a) an agreement (hereinafter referred to as the Fund Agreement) for the establishment and

operation of an international body to be called the International Monetary Fund (hereinafter
referred to as the International Fund), and

(b) an agreement (hereinafter referred to as the Bank Agreement) for the establishment and

operation of an international body to be called the International Bank for Reconstruction and
Development (hereinafter referred to as the International Bank);

3[BE it enacted as follows:—]

**1. Short title, extent and commencement.—(1)** This [2][Act] may be called the International

Monetary Fund and Bank [2][Act], 1945.

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

(3) It shall come into force [6] at once.

**2. Payments to International Fund and Bank.—(1)** [7][There shall be paid, after due appropriation

made by Parliament by law in this behalf, out of the Consolidated Fund of India] all such sums as may
from time to time be required for the purpose of paying—

(a) the subscriptions payable by the Central Government, to the International Fund under

paragraph (a) of section 3 [8]* * * of Article III of the Fund Agreement, and [9][to the International
Bank under paragraphs (a) and (c)] of section 3 of Article II of the Bank Agreement;

(b) any sums payable by the Central Government to the International Fund under

10[section 11 of Article V] of the Fund Agreement, and to the International Bank under
section 9 of Article II of the Bank Agreement;

(c) any charges payable by the Central Government to the International Fund under section 8 of

Article V [11][, or under section 2, section 3 or section 5 of [12][Article XX]],] of the Fund Agreement;

(d) any sums required for implementing the guarantee of the Central Government referred to in

section 3 of Article XIII of the Fund Agreement;

1. Published in the Gazette of India, Extraordinary, dated the 24th December, 1945, as Ordinance No. 47 of 1945. The

Ordinance, made in exercise of the powers conferred by section 72 of the Government of India Act, as set out in the
Ninth Schedule to the Government of India Act, 1935 (26 Geo. 5, c. 2), was converted into an Act by Act 25 of 1959.

2. Subs. by Act 25 of 1959, s. 2, for “Ordinance”.
3. Subs by s. 3, ibid., for the last paragraph of the preamble and the enacting formula.
4. Subs. by the A.O. 1950, for “all the Provinces of India”.
5. The words “except Part B States” omitted by Act 3 of 1951, s. 3 and the Sch.
6. This Act has been extended in its application to the Union territory of Goa, Daman and Diu by Act 11 of 1963, s. 3 and the

Schedule (w.e.f. 1-2-1965).

7. Subs. by Act 41 of 1969, s. 2, for certain words (w.e.f. 26-12-1981).
8. Omitted by Act 67 of 1982, s. 2 (w.e.f. 15-1-1983).
9. Subs. by Act 25 of 1959, s. 4, for “to the International Bank under paragraph (a)”.
10. Subs. by Act 67 of 1982, s. 2, for “paragraph (b) of section of Article IV” (w.e.f. 15-1-1983).
11. Ins. by Act 41 of 1969, s. 2 (w.e.f. 26-12-1981).
12. Subs. by Act 67 of 1982, s. 2, for “Article XXVI” (w.e.f. 15-1-1983).

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1[(dd) any assessments required to be paid by the Central Government to the International Fund

under section 4 or section 5 of [2][Article XX] of the Fund Agreement;]

(e) any compensation required to be paid by the Central Government to the International Fund or

to any member thereof under 3[Schedule I, Schedule J or Schedule K] to the Fund Agreement.

(2) The Central Government may, if it thinks fit so to do, create and issue to the International

Fund or International Bank, in such form as it thinks fit, any such non-interest bearing and nonnegotiable notes or other obligations as are provided for by [4][section 4] of Article III of the Fund
Agreement and section 12 of Article V of the Bank Agreement.

**3.** **Reserve Bank to be depository for International Fund and Bank.—The Reserve Bank of**

India (hereinafter referred to as the Reserve Bank) shall be the depository of the [5]* * * Indian currency
holdings of the International Fund and International Bank.

**6[3A.** **Reserve Bank to use, receive, acquire, etc., special drawing rights on behalf of**

**Central Government.—The Reserve Bank may, on behalf of the Central Government, use, receive,**
acquire, hold, transfer or operate the special drawing rights of that Government in the International Fund
and perform all acts supplemental or incidental thereto.]

**4. Power to call for information.—(1) Where under [7][paragraph (b) of section 3 of Article IV or]**

section 5 of Article VIII of the Fund Agreement, the International Fund requires the Central Government
to furnish it with any information, the Central Government, or if generally or specially authorised by the
Central Government in this behalf, the Reserve Bank, may by order in writing require any peson to
furnish to such officer or other person as may be specified in the order such detailed information as the
Central Government or the Reserve Bank, as the case may be, may determine to be essential for the
purpose of complying with the request of the International Fund; and any person so required shall be
bound to furnish such information.

(2) Every officer or person to whom any information is required to be furnished under this section

shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code
(45 of 1860).

(3) No information obtained under this section shall be furnished to the International Fund in such

detail as to disclose the affairs of any person [8]***.

(4) A determination of the Central Government or the Reserve Bank under sub-section (1) as to the

extent of detail in which information is to be furnished shall be final, and in any prosecution under section
176 or section 177 of the Indian Penal Code (45 of 1860) in respect of any information required to be
furnished under this section, it shall not be a defence to assert that the information was required to be
furnished in greater detail than was essential for the purpose of complying with the request of the
International Fund.

(5) No prosecution for an offence in respect of any information required to be furnished under this

section shall be instituted except with the previous sanction of the Central Government.

1. Ins by Act 41 of 1969, s. 2 (w.e.f. 26-12-1981).
2. Subs. by Act 67 of 1982, s. 2, for “Article XXVI” (w.e.f. 15-1-1983).
3. Subs. by s. 2, ibid., for “Schedule D or Schedule E” (w.e.f. 15-1-1983).
4. Subs. by s. 2, ibid., for “section 5” (w.e.f. 15-1-1983).
5. The word “British” omitted by Act 48 of 1952, s. 3 and Sch. II.
6. Ins. by Act 41 of 1969, s. 3 (w.e.f. 26-12-1981).
7. Ins. by Act 67 of 1982, s. 3 (w.e.f. 15-1-1983).
8. Certain words omitted by s. 3, ibid. (w.e.f. 15-1-1983).

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**5. Certain provisions of Agreements to have force of law.—Notwithstanding** anything to the

contrary contained in any other law, the provisions of the Fund and Bank Agreements set out in the
Schedule shall have the force of law in [1][India]:

Provided that nothing in section 9 of Article IX of the Fund Agreement or in section 9 of Article VII

of the Bank Agreement shall be construed as—

(a) entitling the International Fund or International Bank to import into [1][India] goods

free of any duty of customs without any restriction on their subsequent sale therein, or

(b) conferring on the International Fund or International Bank any exemption from duties or

taxes which form part of the price of goods sold or which are in fact no more than charges for
services rendered.

**6.** [Amendment of section 17, Act 2 _of_ 1934.] _Rep. by the Repealing and Amending Act,_ 1952

(48 of 1952), s. 2 and Sch.

**7. Power to make rules. —** [2][(1)] The Central Government may, by notification in the Official

Gazette, make rules for giving effect to the provisions set out in the Schedule, and generally for carrying
out the purposes of this [3][Act].

4[(2) Every rule made under this section shall be laid, as soon as may be after it is made, 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 [5][in two or more successive sessions], and if before the expiry of [6][the
session immediately following the session or the successive sessions aforesaid], both Houses agree in
making any modification in the rule, or both Houses agree that the rule should not be made, the rule
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 rule.]

1. Subs. by Act 3 of 1951, s. 3 and the Sch., for “Part A States and Part C States”.
2. Renumbered as sub-section (1) by Act 25 of 1959, s. 5.
3. Subs. by s. 2, ibid., for “Ordinance”.
4. Ins. by s. 5, ibid.
5. Subs. by Act 67 of 1982, s. 4, for “in two successive sessions” (w.e.f. 15-1-1983).
6. Subs. by s. 4, ibid., for certain words (w.e.f. 15-1-1983).

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THE SCHEDULE

(See section 5)

PROVISIONS OF AGREEMENTS WHICH SHALL HAVE FORCE OF LAW

PART I

FUND AGREEMENT

_Paragraph (b) of section 2 of Article VIII_

Exchange contracts which involve the currency of any member and which are contrary to

the exchange control regulations of that member maintained or imposed consistently wi th this
Agreement shall be unenforceable in the territories of any member.

ARTICLE IX

STATUS, IMMUNITIES AND PRIVILEGES

SECTION 1. Purpose of Article

To enable the fund to fulfil the functions with which it is entrusted, the status,

immunities and privileges set forth in this Article shall be accorded to the Fund in the
territories of each member.

SECTION 2. Status of the Fund

The Fund shall possess full juridical personality, and, in particular, the capacity

(i) to contract;

(ii) to acquire and dispose of immovable and movable property;

(iii) to institute legal proceedings.

SECTION 3. Immunity from judicial process

The Fund, its property and its assets, wherever located and by whomsoever held, shall

enjoy immunity from every form of judicial process except to the extent that it expressly
waives its immunity for the purpose of any proceedings or by the terms of any contract.

SECTION 4. Immunity from other action

Property and assests of the Fund, wherever located and by whomsoever held, shall be

immune from search, requisition, confiscation, expropriation or any other form of seizure by
executive or legislative action.

SECTION 5. Immunity of archives

The archives of the Fund shall be inviolable.

SECTION 6. Freedom of assets from restrictions

To the extent necessary to carry out the [1][activities] provided for in this Agreement, all property and

assets of the Fund shall be free from restrictions, regulations, controls and moratoria of any nature.

SECTION 7. Privilege for communications

The official communications of the Fund shall be accorded by members the same

treatment as the official communications of other members.

1. Subs. by Act 67 of 1982 s. 5, for “operations” (w.e.f. 15-1-1983).

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SECTION 8. Immunities and privileges of officers and employees

All governors, executive directors, alternates, [1][members of committees, representatives

appointed under Article XII, section 3(j), advisers of any of the foregoing persons, officers and
employees] of the Fund

(i) shall be immune from legal process with respect to acts performed by them in their official

capacity except when the Fund waives this immunity;

(ii) not being local nationals, shall be granted the same immunities from immigration

restrictions, alien registration requirements and national service obligations and the same
facilities as regards exchange restrictions as are accorded by members to the representatives,
officials, and employees of comparable rank of other members;

(iii) shall be granted the same treatment in respect of travelling facilities as is accorded by

members to representatives, officials and employees of comparable rank of other members.

SECTION 9. Immunities from taxation

(a) The Fund, its assets, property, income and its operations and transactions

authorized by this Agreement, shall be immune from all taxation and from all customs
duties. The Fund shall also be immune from liability for the collection or payment of any
tax or duty.

(b) No tax shall be levied on or in respect of salaries and emoluments paid by the Fund

to executive directors, alternates, officers or employees of the Fund who are not local
citizens, local subjects, or other local nationals.

(c) No taxation of any kind shall be levied on any obligation or security issued by the

Fund, including any dividend or interest thereon, by whomsoever held

(i) which discriminates against such obligation or security solely because of its

origin; or

(ii) if the sole jurisdictional basis for such taxation is the place or currency in which it is

issued, made payable or paid, or the location of any office or place of business maintained by the
Fund.

2[ ARTICLE XXI

ADMINISTRATION OF THE GENERAL DEPARTMENT AND THE SPECIAL DRAWING RIGHTS

DEPARTMENT

(a) *      -      -      -      
( b ) In addition to the privileges and immunities that are accorded under Article IX

of this Agreement, no tax of any kind shall be levied on special drawing rights or on
operations or transactions in special drawing rights.]

PART II

BANK AGREEMENT

ARTICLE VII

STATUS, IMMUNITIES AND PRIVILEGES

SECTION 1. Purpose of Article

To enable the Bank to fulfil the functions with which it is entrusted, the status, immunities and

privileges set forth in this Article shall be accorded to the Bank in the territories of each member.

1. Subs. by Act 67 of 1982, s. 5, for “officers and employees” (w.e.f. 15-1-1983).
2. Ins. by s. 5, ibid. (w.e.f. 15-1-1983).

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SECTION 2. Status of the Bank

The Bank shall possess full juridical personality, and, in particular, the capacity

(i) to contract;

(ii) to acquire and dispose of immovable and movable property;

(iii) to institute legal proceedings.

SECTION 3. Position of the Bank with regard to judicial process

Actions may be brought against the Bank only in a court of competent jurisdiction in the

territories of a member in which the Bank has an office, has appointed an agent for the purpose
of accepting service or notice of process, or has issued or guaranteed securities. No actions shall,
however, be brought by members or persons acting for or deriving claims from members. The
property and assets of the Bank shall, wheresoever located and by whomsoever held, be immune
from all forms of seizure, attachment or execution before the delivery of final judgment against
the Bank.

SECTION 4. Immunity of assets from seizure

Property and assets of the Bank, wherever located and by whomsoever held, shall be

immune from search, requisition, confiscation, expropriation or any other form of seizure by executive or
legislative action.

SECTION 5. Immunity of archives

The archives of the Bank shall be inviolable.

SECTION 6. Freedom of assets from restrictions

To the extent necessary to carry out the operations provided for in this Agreement and subject to the

provisions of this Agreement, all property and assets of the Bank shall be free from any
restrictions, regulations, controls and moratoria of any nature.

SECTION 7. Privilege for communications

The official communications of the Bank shall be accorded by each member the same

treatment that it accords to the official communications of other members.

SECTION 8. Immunities and privileges of officers and employees

All governors, executive directors, alternates, officers and employees of the Bank

(i) shall be immune from legal process with respect to acts performed by them in their official

capacity except when the Bank waives this immunity;

(ii) not being local nationals, shall be accorded the same immunities from immigra
tion restrictions, alien registration requirements and national service obligations and the
same facilities as regards exchange restrictions as are accorded by members to the
representatives, officials, and employees of comparable rank of other members;

(iii) shall be granted the same treatment in respect of travelling facilities as is recorded

by members to representatives, officials and employees of comparable rank of other
members.

SECTION 9. Immunities from taxation

(a) The Bank, its assets, property, income and its operations and transactions

authorized by this Agreement, shall be immune from all taxation and from all customs
duties. The 'Bank shall also be immune from liability for the collection or payment of any
tax or duty.

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(b) No tax shall be levied on or in respect of salaries and emoluments paid by the Bank to executive

directors, alternates, officials or employees of the Bank who are not local citizens, local subjects, or other
local nationals.

(c) No taxation of any kind shall be levied on any obligation or security issued by the Bank (including

any dividend or interest thereon) by whomsoever held

(i) which discriminates against such obligation or security solely because it is issued by the Bank;

or

(ii) if the sole jurisdictional basis for such taxation is the place or currency in which it is issued,

made payable or paid, or the location of any office or place of business maintained by the Bank.

(d) No taxation of any kind shall be levied on any obligation or security guaranteed by the Bank

(including any dividend or interest thereon) by whomsoever held

(i) which discriminates against such obligation or security solely because it is guaranteed by the

Bank; or

(ii) if the sole jurisdictional basis for such taxation is the location of any office or place of

business maintained by the Bank.

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