#THE RESERVE BANK OF INDIA ACT, 1934
_________ 

##ARRANGEMENT OF SECTIONS 
_________ 

##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. 


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.

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,  

45U. Definitions. 

SECURITIES, ETC. 

3 

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. 

45Y. Joint Mechanism. 

CHAPTER IIIE 

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. 

4 

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.]. 



#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 India and generally to operate 
the currency and credit system of the country to its advantage;

AND WHEREAS it is essential to have a modern monetary policy framework to meet the challenge of 
an increasingly complex economy; 

AND  WHEREAS  the  primary  objective  of  the  monetary  policy  is  to  maintain  price  stability  while 
keeping in mind the objective of growth; 

AND  WHEREAS  the  monetary  policy  framework  in  India  shall  be  operated  by  the  Reserve  Bank  of 
India;

It is hereby enacted as follows:— 

##CHAPTER I 

###PRELIMINARY 

**1. Short title, extent and commencement.**—(1) This Act may be called the Reserve Bank of India 
Act, 1934. 

(2) It extends to the whole of India.

(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 as  the 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,— 

(aii) “the Bank” means the Reserve Bank of India constituted by this Act; 

(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;

(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;

[^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.
                                                           
(bva)  “Consumer  Price  Index”  means  the  Consumer  Price  Index  Combined  published  by  the 
Government of India from time to time;

(bvi) “Deposit Insurance Corporation” means the Deposit Insurance Corporation established 
under section 3 of the Deposit Insurance Corporation Act, 1961 (47 of 1961);

(bviiia)“Exim  Bank”  means  the  Export-Import  Bank  of  India  established  under  the  Export-
Import Bank of India Act, 1981 (28 of 1981);

(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);

(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;

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

(cci) “Monetary Policy Committee” means the Committee constituted under sub-section (1) of 
section 45ZB;

(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);

(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;

(cccc)  “National  Housing  Bank”  means  the  National  Housing  Bank  established  under 
section 3 of the National Housing Bank Act, 1987 (53 of 1987);

(cccci) “Policy Rate” means the rate for repo-transactions under sub-section (12AB) of section 17;

(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 rupees which are legal tender in India under the provisions of 
the Indian Coinage Act, 1906 (3 of 1906);

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

(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);

(ea) “Sponsor Bank” means a Sponsor Bank as defined in the Regional Rural Banks Act, 1976 
(21 of 1976);

(eb) “State  Bank”  means  the  State  Bank  of  India constituted  under the  State  Bank  of  India 
Act, 1955 (23 of 1955);

(fi) “State Financial Corporation” means any State Financial Corporation established under the 
State Financial Corporations Act, 1951 (63 of 1951);

(g) “Unit Trust” means the Unit Trust of India established under section 3 of the Unit Trust of 
India Act, 1963 (52 of 1963);

(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, 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 
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. 

**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, Delhi and Madras and may establish branches or agencies in any other place in 
India or, with the previous sanction of the Central Government elsewhere.

**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. 

(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.**—(1) The Central Board 
shall consist of the following Directors, namely:—

(a)  a  Governor  and 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) 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 Central Government: 

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:

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: 

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

A Director nominated under clause (c) of sub-section (1) shall hold office for a period of four 
years and 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 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) A retiring Director shall be eligible for re-nomination.

**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. 

(3) Every member of a Local Board shall hold office for a term of four years and 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 , 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 

(e)  is  a  Director  of  banking  company  within  the  meaning  of  clause  (c)  of section  5 of 
the 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 Central Government may remove from office 
the Governor, or a Deputy Governor or any other Director or any member of a Local Board:

(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 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 nomination as  Director  or  member  of  a  Local  Board  of  any  person  who  is  a 
member of Parliament or the Legislature of any State shall be void, unless within two months of the 
date of his nomination he ceases to be such member, and if any Director or member of a Local 
Board is elected or nominated as a member of 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 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 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. 

(3) Where any casual vacancy in the office of any member of a Local Board occurs the Central 
Board may nominate thereto any person recommended by the 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 by the Central Government.

(5) A person nominated under this section to fill a casual vacancy shall 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 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 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, 
the Central  Government, the State Government local  authorities, banks 
and any other persons:

(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, drawn 
on 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 or  a  State  co-operative 
bank 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 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, drawn and 
payable in India and bearing two or more good signatures, one of which shall be that of a scheduled 
bank or a State co-operative bank 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 agricultural operations or 
the  marketing  of  crops,  and  maturing  within fifteen  months  from  the  date  of  such  purchase  or 
rediscount, exclusive of days of grace; 

(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 co-
operative bank or a State financial corporation 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 drawn and 
payable in India and bearing the signature of a scheduled bank, and issued or drawn for the 
purpose  of  holding  or  trading  in  securities  of the  Central  Government or a State 
Government  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 of foreign exchange ;

(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;

(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

(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

(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.

(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  local  authorities,  scheduled  banks , State co-operative 
banks and State Financial Corporations or loans and advances, repayable on demand or on 
the expiry of fixed periods not exceeding ninety days, against the security of—

(a)  stocks,  funds  and  securities  (other  than  immovable  property)  in  which  a  trustee  is 
authorised  to  invest trust money  by  any  Act  of  Parliament of  the  United Kingdom  or  by  any 
law for time being in force in India;

(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 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 or State co-operative bank, supported by 
documents  of  title to  goods such  documents  having  been transferred],  assigned,  or  pledged  to 
any  such  bank  as  security  for a  loan  or  advance  made for  bona  fide  commercial  or  trade 
transactions, or for the purpose of financing agricultural operations or the marketing of crops:

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;

(4A) the making to any State Financial Corporation , 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: 

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 twice the paid-up share 
capital thereof;

(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);

(4B) the making to the Industrial Finance Corporation of India 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  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;

(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;

(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;

(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;

(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;

(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;

(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;

(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;

(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;

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

(4G)  the  making  of  loans  and  advances  to,  and  the  purchasing  of  bonds  and  debentures 
of, the  Exim  Bank or  the  Reconstruction  Bank or  the  Small  Industries  Bank 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;

(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 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;

(4-I) the making to scheduled banks, the Exim Bank the Reconstruction Bank or the 
Small  Industries  Bank the  Industrial  Finance  Corporation 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;

(4J) the making to the Exim 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  good  signatures  and  maturing  within  five  years  from  the  date  of 
such loan or advance;

(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;

(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 Central  Government and State Governments of  advances 
repayable in each case not later than three months from the date of the making of the advance; 

(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;

(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;

(8) the purchase and sale of securities of the Central Government or a State Government 
of any maturity or of such securities of a local authority as may be specified in this behalf by 
the Central Government on the recommendation of the Central Board:

Provided  that  securities  fully  guaranteed  as  to  principal  and  interest  by any  such 
Government or authority shall be deemed for the purposes of this clause to be securities of  such 
Government or authority;








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). 

19 

 
 
 
 
 
 
 
                                                           
(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). 

20 

                                                           
(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). 

21 

                                                           
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). 

22 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
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). 

23 

                                                           
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). 

24 

 
 
 
 
 
 
 
 
                                                           
(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).  

25 

 
 
 
 
 
 
 
 
                                                           
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  sub-
section (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). 

26 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
(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 notes1*** 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). 

27 

                                                           
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. 

28 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
 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). 

29 

 
 
 
 
 
 
 
 
                                                           
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). 

30 

 
 
 
 
 
 
 
                                                           
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  co-
operative 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). 

31 

 
 
 
 
 
 
 
 
                                                           
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). 

32 

 
 
 
 
 
 
 
                                                           
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). 

33 

                                                           
(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).  

34 

                                                           
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.] 

COLLECTION AND FURNISHING OF CREDIT INFORMATION 

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

2[CHAPTER IIIA 

(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). 

35 

                                                           
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). 

36 

                                                           
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). 

37 

 
 
 
 
 
 
                                                           
(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). 

38 

                                                           
(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  non-
banking 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) 

39 

                                                           
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. 

40 

(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. 

41 

(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  sub-
section (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  non-
banking 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). 

42 

                                                           
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 

43 

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 non-
banking 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  non-
banking  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). 

44 

                                                           
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). 

45 

 
 
 
 
 
 
 
 
 
                                                           
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 non-
banking  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). 

46 

 
 
                                                           
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). 

47 

                                                           
(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). 

48 

                                                           
(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).  

49 

                                                           
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 non-
banking 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 non-
banking 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). 

50 

 
 
 
                                                           
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). 

51 

                                                           
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). 

52 

                                                           
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). 

53 

 
 
 
                                                           
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 Search-
cum-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). 

54 

                                                           
(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 sub-
section (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. 

55 

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. 

56 

(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.] 

57 

 
 
 
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). 

58 

 
 
 
 
 
 
 
                                                           
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). 

59 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
(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). 

60 

 
 
 
 
 
 
 
 
                                                           
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). 

61 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
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). 

62 

                                                           
(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[twenty-
five 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). 

63 

                                                           
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). 

64 

                                                           
(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). 

65 

                                                           
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). 

66 

                                                           
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. 

67 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
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. 11377/3.5.100/2010-11, 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. 3427/16.01.0145/2015-16, 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. 

68 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
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. 

69 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
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.  7812-
A/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. 

70 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
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. 

71 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
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. 

72 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
 
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 612/23-13-063/2002-2003, 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. 

73 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
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. 

74 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
 
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. 

75 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
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. 
' C D .  

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. 

76 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
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. 

11379/3.5.100/2010-11, 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. 

77 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
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. 

78 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
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. 

79 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
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. 

80 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
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/03-05.100/2009-
10, 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. 

81 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
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. 

82 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
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. 

83 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
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-

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. 3231/03.05.100/2008-
09, dated 22nd September, 2008. 

84 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
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). 

85 

 

                                                           
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/ 12.06.007/2008-09, 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”. 

86 

 

                                                           
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. 

87 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
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.596/16.01.677/2002-2003, 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. 

88 

 
                                                           
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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