Professional Documents
Culture Documents
Rbi Act
Rbi Act
Rbi Act
• Definitions.
• Power of Bank to collect credit information.
• Power to call for returns containing credit information.
• Procedure for furnishing credit information to banking
companies.
• Disclosure of information prohibited.
• Certain claims for compensation barred.
• [Penalties.]
“credit information’’ means any information relating to
• the amounts and the nature of loans or advances and other
credit facilities granted
• the nature of security taken
• the guarantee furnished by a banking company for any of its
customers
• 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.
CHAPTER IIIB
PROVISIONS RELATING TO NON-BANKING
INSTITUTIONS RECEIVING DEPOSITS AND
FINANCIAL INSTITUTIONS
• Chapter IIIB not to apply in certain cases.
• Definitions.
• Requirement of registration and net owned fund.
• Maintenance of percentage of assets.
• Reserve fund.
• Bank to regulate or prohibit issue of prospectus or
advertisement soliciting deposits of money.
• Power of Bank to determine policy and issue directions.
• Power of Bank to collect information from non-banking
institutions as to deposits and to give directions.
• Power of Bank to call for information from financial institutions and to
• give directions.
• Duty of non-banking institutions to furnish statements, etc., required
by Bank.
• Powers and duties of auditors.
• Power of Bank to prohibit acceptance of deposit and alienation of
assets.
• Power of Bank to file winding up petition.
• Inspection.
• Deposits not to be solicited by unauthorised person.
• Disclosure of information.
• Power of Bank to exempt.
• [Penalties.]
• [Cognizance of offence.]
• Chapter IIIB to override other laws.
• Power of Company Law Board to offer repayment of deposit.
• Nomination by depositors.
• 45H. Chapter IIIB not to apply in certain cases
• State Bank or a banking company as defined in section 5 of the
[Banking Regulation Act, 1949]
• or a corresponding new bank as defined in clause (da) of section
5 of that Act
• a Regional Rural Bank or a co-operative bank] or a primary
agricultural credit society or a primary credit society]
‘‘financial institution’’ means any non-banking institution which
carries on as its business or part of its business any of the following
activities, namely:–
• the financing, whether by way of making loans or advances
• the acquisition of shares, stock, bonds, debentures or securities
issued by a Government or local authority or other marketable
securities
• letting or delivering of any goods to a hirer under a hire-purchase
agreement
• the carrying on of any class of insurance business
• managing, conducting or supervising, as foreman, agent or in any
other capacity, of chits or kuries as defined in any law
• ‘‘non-banking institution’’ means a company, corporation [or
cooperative society].
• 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
• 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;]
1[45-IA. Requirement of registration and net owned fund.
• (a) obtaining a certificate of registration issued under this Chapter;
and
• (b) having the net owned fund of twenty-five lakh rupees or such
other amount, not exceeding two hundred lakh rupees, as the Bank
may, by notification in the Official Gazette, specify.
• Every non-banking financial company shall make an application for
registration to the Bank in such form as the Bank may specify:
• The Bank may cancel a certificate of registration granted to a non-
banking financial company under this section if such company–
• 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;
• Definitions.
• Transactions in derivatives.
• Power to regulate transactions in derivatives, money market
instruments, etc.
• Duty to comply with directions and furnish information.
• 45V. Transactions in derivatives
• 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.
CHAPTER IIIE
JOINT MECHANISM
• Joint Mechanism.
• 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 or the Insurance Regulatory and Development
Authority established under section 3 of the Insurance Regulatory
and Development Authority Act, 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
CHAPTER IIIF
MONETARY POLICY
• Provisions of this Chapter to override other provisions of Act.
• Inflation target.
• Constitution of Monetary Policy Committee.
• Eligibility and selection of Members appointed by Central
Government.
• Terms and conditions of appointment of Members of Monetary
Policy Committee.
• Removal of Members of Monetary Policy Committee.
• Vacancies etc., not to invalidate proceedings of Monetary Policy
Committee.
• Secretary to Monetary Policy Committee.
• Information for Monetary Policy Committee Members.
• Meetings of Monetary Policy Committee.
• Steps to be taken to implement decisions of Monetary Policy
Committee.
• Publication of decisions.
• Publication of proceedings of meeting of Monetary Policy
Committee.
• Monetary Policy Report.
• Failure to maintain inflation target.
• Power to make rules.
• 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
CHAPTER IV
GENERAL PROVISIONS
• Contribution by Central Government to the Reserve Fund.
• Contribution to National Rural Credit (Long Term Operations) Fund
and National Rural Credit (Stabilisation) Fund.
• [46B.]
• National Industrial Credit (Long Term Operations) Fund.
• National Housing Credit (Long Term Operations) Fund.
• Allocation of surplus profits.
• Exemption of Bank from income-tax and super-tax.
• Publication of bank rate.
• Auditors.
• Appointment of special auditors by Government.
• Powers and duties of auditors.
• Returns.
• Rural Credit and Development
• Delegation of powers.
• Power of Bank to depute its employees to other institutions.
• [Reports by the Bank. Power to require declaration as to
ownership of registered shares.]
• Liquidation of the Bank.
• Power of the Central Board to make regulations.
• Protection of action taken in good faith.
CHAPTER V PENALTIES
• Penalties.
• Offences by companies.
• Application of section 58B barred.
• Cognizance of offences.
• Application of fine.
• Power of Bank to impose fine.
• [Amendment of Act 3 of 1906. Repeals, Amendment of
section 11, Act 7 of 1913.]
• a statement which is false in any material particular knowing it to
be false or wilfully 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.
• 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 shall be punishable with fine which may extend to two
thousand rupees in respect of each offence and if he persists in
such failure or refusal, with further fine which may extend to one
hundred rupees for every day, after the first during which the
offence continues.
• 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.
• 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 months, or with
fine, which may extend to one thousand rupees, or with both.