The Reserve Bank of India Act, 1934
This document presents The Reserve Bank of India Act, 1934. The Reserve Bank is called "The Bank" in the Act. The Act is divided into the following chapters:Chapter I, the preliminary section, contains the short title and defines important terms, like:
- The Bank;
- The Central Board;
- Deposit Insurance Corporation, etc.
Chapter II sets out the provisions for incorporation, capital, management and business, and discusses:
- The establishment of the Reserve Bank;
- Its offices, branches and agencies;
- The composition of the Central Board, etc.
- Explains the functions of the Central Bank, such as:
- The obligation of The Bank to transact government business,
- Its right to issue bank notes, etc.
- Is further divided into the following sections:
- Collecting and furnishing of credit information,
- Provisions relating to non-banking financial institutions receiving deposits and financial institutions,
- Prohibition of acceptance of deposits by uncorporated bodies.
Chapter IV explains the general provisions of the Act, such as:
- Contribution by the Central Government to the Reserve Fund;
- Exemption of The Bank from income-tax and super tax;
- Powers and duties of the auditors, etc.
The last section, is titled "Penalties" and discusses:
- Offences by companies and the power of The Bank to impose fines.