The Reserve Bank of India Act, 1934
Establishes the Reserve Bank, defines its functions, currency-issue powers, monetary policy, and regulation of NBFCs.
- Sections
- 61
- Chapters
- 5
- Tier
- Tier 1
In one line
What this Act says
Establishes the Reserve Bank of India as the central bank — issuing currency, running monetary policy and regulating NBFCs.
Penalties
What happens if you break it
Carrying on NBFC business without registration
§58B(4A)Imprisonment 1 – 5 years + fine ₹1 lakh – ₹5 lakh.
Failure to comply with RBI directions to NBFCs
§58BFine up to ₹5 lakh + continuing daily fine up to ₹25,000.
Counterfeiting / mutilating currency
§28Punishable under BNS; RBI may seize the notes.
Headline offences only — not exhaustive. For the full text and every section, open the source PDF or the official link below.
Key Sections & Penalties
RBI Act at a Glance
| Section | Type | Provision | Applicability | Details / Penalty |
|---|---|---|---|---|
| §22 | right | Right to issue bank notes | - | Administrative / Structural |
| §42 | structural | Cash reserves of scheduled banks | - | Administrative / Structural |
| §45ZA | structural | Inflation target | - | Administrative / Structural |
| §45ZB | structural | Monetary Policy Committee | - | Administrative / Structural |
| §58B(4A) | criminal | Carrying on NBFC business without registration | - | Imprisonment 1 – 5 years + fine ₹1 lakh – ₹5 lakh high RISK |
Maximum punishments as prescribed by the Act. Actual sentencing depends on facts, prior convictions and judicial discretion.
Sources
Read the Act yourself
We always show you the local source PDF and at least one verifiable online reference, so you can check anything we say.
Source PDF
RBI Act, 1934.pdf
Full text · opens in new tab
Reference
Wikipedia
en.wikipedia.org · opens in new tab
About this Act
Quick facts
- Year
- 1934
- Sections
- 61
- Chapters
- 5
- Tier
- Tier 1