Indian Bare Acts

Search Alphabatically :

THE RESERVE BANK OF INDIA ACT, 1934

Title : THE RESERVE BANK OF INDIA ACT, 1934

Year : 1934

[Act, No. 2 of 1934]1*
[6th March, 1934]

PREAMBLE

An Act to Constitute a Reserve Bank of India

whereas it is expedient to constitute a Reserve Bank for India to regulate the issue of Bank notes and the keeping of reserves with a view to securing monetary stability in 2*[India] and generally to operate the currency and credit system of the country to its advantage;

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

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

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

It is hereby enacted as follows:-

-----------------------------------------------------------------------------------------------------------------------

1. For Statement of Objects and Reasons, see Gazette of India, 1933, Pt. V, p. 160; and for Report of Select Committee, see Gazette of India, 1933. Pt. V, pp. 197-207.

For the functioning of the Reserve Bank in or in relation to Burma, after the separation of that country from India, see the India and Burna (Burma Monetary Arrangements) Order, 1937.
This Act was extended to Berar by Act 4 of 1941; to Goa, Daman and Diu by Regulation 6 of 1962; to Dadra and Nagar Haveli by Regulation 6 of 1963, section 2 and Schedule 1 (w.e.f. 1-7-1965); to the whole of the Union Territory of Lakshadweep by Regulation 8 of 1965, section 3 and Schedule; to the State of Sikkim: vide Notification No. S.O. 208 (E), dated 16th May, 1975, Extraordinary, Pt. II, Section 3 (ii), p. 1213 and came into force in Sikkim (w.e.f. 14-8-1976); vide Notification No. S.O. 547 (E), dated 13th August, 1976.

This Act has been supplemented by Act 28 of 1964.

2. Substituted by the A.O. 1948, for 'British India'.

3. Substituted by the Finance Act, 2016 for the previous text :-
"And whereas in the present disorganisation of the monetary systems of the world it is not possible to determine what will be suitable as a permanent basis for the Indian monetary system;
But whereas it is expedient to make temporary provision on the basis of the existing monetary system, and to leave the question of the monetary standard best suited to India to be considered when the international monetary position has become sufficiently clear and stable to make it possible to frame permanent measures;"

-----------------------------------------------------------------------------------------------------------------------
 


(1) This Act may be called the Reserve Bank of India Act, 1934.

1*[(2) It extends to the whole of India 2*[3[***].]

(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 4* as the 5*[Central Government] may, by notification in the Gazette of India, appoint.

--------------------------------------------------------------------------------------------------------------------------------------------------------

1. Substituted by the A.O. 1950, for sub-section (2).

2. Substituted by Act 32 of 1951, section 3, for "Part B states".

3. The words "Except the State of Jammu and Kashmir" omitted by Act 62 of 1956, section 2 and Schedule (w.e.f. 1-11-1956).

4. Sections 2 to 1947, 50 to 52, 55 to 58 and 61 were brought into force on 1st January, 1935, see Gazette of India, 1934, Pt. I, p. 1369, and the other sections on 1st April, 1935, see Gazette of India, 1935, Pt. I, p. 538.

5. Substituted by the India and Burma (Burma Monetary Arrangements) Order, 1937, for "Governor-General in Council".

-------------------------------------------------------------------------------------------------------------------------------------------------------------



In this Act, unless there is anything repugnant in the subject or context,-

1[***]

2*[(aii)] "the Bank" means the Reserve Bank of India constituted by this Act;

3*[(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;]

(b) "The Central Board" means the Central Board of Directors of the Bank;

27*[(bva) "Consumer Price Index" means the Consumer Price Index Combined published by the Government of India from time to time;]

4[***]

5*[6*[(bvi)] "Deposit Insertedurance Corporation" means the Deposit Insertedurance Corporation established under section 3 of the Deposit Insertedurance Corporation Act, 1961 (47 of 1961);]

7*[8[***]

9[***]

10*[(bviiia)] "Exim Bank" means the Export-Import Bank of India established under the Export-Import Bank of India Act, 1981;]

11*[(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);]

27*[(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;]

3*[(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;]

27*[(cci) "Monetary Policy Committee" means the Committee constituted under sub-section (1) of section 45ZB;]

12*[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);]

13*[(cccc) "National Housing Bank" means the National Housing Bank established under section 3 of the National Housing Bank Act, 1987;]

27*[(cccci) "Policy Rate" means the rate for repo-transactions under sub-section (12AB) of section 17;]

14*[***]

15*[(cv) "Reconstruction Bank" means the Industrial Reconstruction Bank of India established under section 3 of the Industrial Reconstruction Bank of India Act, 1984;]

(d) "Rupee coin" means 16[***] rupees which are legal tender 17*[in 18[India]] under the provisions of the Indian Coinage Act, 1906 (3 of 1906);

19[***]

(e) "Scheduled bank" means a bank included in the Second Schedule;

20*[(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;

21*[(ea) "Sponsor Bank" means a Sponsor Bank as defined in the Regional Rural Banks Act, 1976;]

22*[23*[(eb)] "State Bank" means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955);]
24[***]

25*[(fi) "State Financial Corporation" means any State Financial Corporation established under the State Financial Corporations Act, 1951 (63 of 1951);]

26*[(g) "Unit Trust" means the Unit Trust of India established under section 3 of the Unit Trust of India Act, 1963 (52 of 1963);]

12*[(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;

(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).]

-------------------------------------------------------------------------------------------------------------------------------------------------------------

1. Clauses (a) and (ai) omitted by Act 61 of 1981, section 61 and Schedule II (w.e.f. 1-5-1966). Earlier clauses (a) and (aa) were re-lettered as clauses (ai) and (aii) respectively and before clause (ai) so re-lettered clause (a) was Inserted by Act 23 of 1965, section 2 (w.e.f. 1-3-1966).

2. Clause (aa) re-lettered as clause (aii) by Act 23 of 1965, section 2 (w.e.f. 1-34966).

3. Inserted by Act 51 of 1974, section 2 (w.e.f. 13-12-1974).

4. Clauses (bi), (bii), (biii), (biv) and (bv) omitted by Act 61 of 1981, section 61 and Schedule II (w.e.f. 1-5-1982) Earlier clauses (bi), (bii), (biii), (biv) and (bv) were Substituted by Act 23 of 1965, section 2, for clause (bb) (w.e.f. 1-5-1966).

5. Clause (bbb) Inserted by Act 47 of 1961, section 51 and Schedule IT (w.e.f. 1-1-1962).

6. Clauses (bbb) re-lettered as clause (bvi) by Act 23 of 1965, section 2 (w.e.f. 1-3-1966).

7. Clause (bbbb) Inserted by Act 18 of 1964, section 38 and Schedule II (w.e.f. 1-7-1964).

8. Clause (bbbb) re-lettered as clause '(bvii) "Development Bank" means the Industrial Development Bank of India established under the Industrial Development Bank of India Act, 1964 (18 of 1964); by Act 23 of 1965, section 2 (w.e.f. 1-3-1966) and omitted by Act 53 of 2003, section 12 and Schedule, Pt. I.

9. Clause (bviii) Inserted by Act 23 of 1965, section 2 (w.e.f. 1-3-1966) and omitted by Act 61 of 1981, section 61 and Schedule II (w.e.f. 12-7-1982).

10. Ins by Act 28 of 1981, section 40 and Schedule II (w.e.f. 1-1.-1982).

11. Substituted by Act 24 of 1978, section 3, for clause (c) (w.e.f. 21-7-1978).

12. Inserted by Act 61 of 1981, section 61 and Schedule II (w.e.f. 1-5-1982).

13. Inserted by Act 53 of 1987, section 56 and the Second Schedule (w.e.f. 9-7-1988).

14. Clauses (ci), (cia), (cii), (ciii), (civ) and (cv) omitted by Act 61 of 1981, section 61 and Schedule II (w.e.f. 1-5-1982). Earlier clauses (ci), (cii), (ciii), (civ) were Inserted by Act 23 of 1965, section 2 (w.e.f. 1-3-1966) and clause (cia) Inserted by Act 51 of 1974, section 2 (w.e.f. 13-12-1974) and clause (cv) Inserted by Act 21 of 1976, section 33 (w.r.e.f. 26-9-1975).

15. Inserted by Act 62 of 1984, section 71 and Schedule III (w.e.f. 20-3-1985).

16. The word "silver" omitted by Act 62 of 1948, section 7 and Schedule (w.e.f. 1-1-1949).

17. Inserted by the India and Burma (Burma Monetary Arrangements) Order, 1937.

18. Substituted by Act 32 of 1951, section 2, for "the States" (w.e.f. 1-11-1951),

19. The word "and" omitted by the India and Burma (Burma Monetary Arrangements) Order, 1937.

20. Inserted by Act 39 of 1989, sec 57 and Schedule II.

21. Inserted by Act, 21 of 1976, section 33 (w.r.e.f. 26-9-1975).

22. Clause (ee) Inserted by Act 23 of 1955, section 52 and Schedule III (w.e.f. 1-7-1955). Earlier clause (ee) was Inserted by the A.O. 1950 and was omitted by Act 32 of 1951, section 4 (w.e.f. 1-11-1951).

23. Clause (ei) re-lettered as clause (eb) by Act 21 of 1976, section 33 (w.e.f. 26-9-1975).

24. Clause (f) omitted by Act 61 of 1981, section 61 and Schedule II (w.e.f. 1-5-1982). Earlier clauses (f) to (k) were Inserted by the India and Burma Monetary Arrangement Order, 1937 and were omitted by Act 11 of 1947, section 2 (w.e.f. 1-4-1947).

25. Inserted by Act 24 of 1978, section 3 (w.e.f. 21-7-1978).

26. Inserted by Act 52 of 1963, section 44 and Schedule II (w.e.f. 1-2-1964). Earlier clause (g) was Inserted by Act 32 of 1951, section 4 (w.e.f. 1-11-1951) and was omitted by Act 62 of 1956, section 2 and Schedule (w.e.f. 1-11-1951).

27. Inserted by Finance Act, 2016.

--------------------------------------------------------------------------------------------------------------------------------------------------------
 
Last updated on July, 2016

Find a Lawyer

Legal Hall of Fame

The current Legal Luminaries of India, the credible names in the legal circle along with those who would be the leading stars of the next decade. These are some of the reliable names in field of law. Nominate the Legal Stars of tomorrow

More

Recent Judgment


Sudha Mishra vs. Surya Chandra Mishra( R.F.A 299 of 2014

The Hon'ble High Court of Delhi in Sudha Mishra vs. Surya Chandra Mishra (R.F.A 299 of 2014)has ruled that a woman has a right over the property of her husband but she cannot claim a right to live in the house of her parents-in-law

More

Bare Acts

Helpline Law provides a user friendly compendium of Indian Law & Bare Acts. Get a complete list & detail of Indian Bare Acts, with amendments and repeals. It comes with easy-to-use features like Search by bare acts & by year. You can even email the information to yourself!

More

Have a Legal Matter ?
Need a Lawyer?

Have a Legal Matter ?

Need a Lawyer?

Male
Female