#THE INTERNATIONAL MONETARY FUND AND BANK ACT, 1945 
_________ 

##ARRANGEMENT OF SECTIONS 
________ 

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 [Repealed.]. 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. 



#THE INTERNATIONAL MONETARY FUND AND BANK ACT, 19451 

##ACT NO. 47 OF 1945

[24th December, 1945.] 

An 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); 

  BE it enacted as follows:—

1. **Short title, extent and commencement.**—(1)  This Act may be  called  the  International 
Monetary Fund and Bank Act, 1945. 

  (2) It extends to the whole of India. 

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

2. **Payments to International Fund and Bank.**—(1) 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 of Article III of the Fund Agreement, and 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 
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, or under section 2, section 3 or section 5 of 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; 

  (dd) any assessments required to be paid by the Central Government to the International Fund 
under section 4 or section 5 of 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 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  non-
negotiable  notes  or  other  obligations  as  are  provided  for  by 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 Indian currency 
holdings of the International Fund and International Bank. 

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 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. 

  (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. 

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 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 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.** — (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 Act. 

  (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 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 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.



##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 with 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  proc ess  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 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. 

SECTION 8. *Immunities and privileges of officers and employees*

  All governors,  executive  directors,  alternates, 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. 

##ARTICLE XXI 

###ADMINISTRATION OF THE GENERAL DEPARTMENT AND THE SPECIAL DRAWING RIGHTS DEPARTMENT 

(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. 

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 appointe d 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. 

  (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. 