RBI Act Most Important Sections PDF

Reserve Bank of India in one of the most important center act. RBI act has conferred many powers to the Reserve Bank of India for supervision and regulations of the banking sector in India.

Revised Priority Sector Lending Guidelines by RBI a Boost for Renewables

Full Course Videos in Hindi English
Check Here
jaiib ppb short notes part 1
Check Here
jaiib exam free study material
Check here
jaiib study material pdf notes 2022
Get Tests Here
how to prepare for ppb
Check Here

In this article we will be discussing the important sections of RBI act. Also RBI act is very important from exams point of view. Whether you are preparing for UPSC or Banking exams like Jaiib, caiib, bank promotions and other the Reserve bank of India Act is very important.


See full description in Video Below:


Most Important RBI Sections

SEC-2 (e) SCHEDULED BANK: As per this section, a Scheduled bank means a bank whose name is included in the 2nd schedule of RBI Act 1934. The essential condition of capital is that, such banks have paid-up capital and reserves of not less than Rs. 5 lac. Bank which are not included in the 2nd Schedule of RBI are called Non-scheduled Bank.

SEC. 17 TYPES OF BUSINESS: Defines various types of business which RBI may transact, which include acceptance of deposit without interest from Central / State govt. purchase sale of forex, securities, rediscounting the bills, P/N, grant loans etc.

SEC. 21 – RIGHT TO TRANSACT GOVT. BUSINESS: RBI to transact Govt. business in India is. Remittance, exchange, keeping deposit free of interest etc.

SEC. 22. BANK NOTES: Sole right to issue bank notes

SEC. 23 ISSUE DEPARTMENT Bank rotes shall be issued by Issue Dept. against security of gold coins, bullion, rupee coins, foreign securities & other approved securities up to Rs. 200 cr.

SEC. 24 DENOMINATION OF NOTES RBI issues all currency notes for denomination of 2, 5,10,20,50,100, 200, 500,1000,2000, 5000,10000

SEC 28 – RULES FOR REFUNDING VALUE: RBI can frame rules for refunding value of mutilated, soiled or imperfect notes as a matter of grate.

SEC 29 – Bank Notes Exempted from Stamp Duty under Indian Stamp Act

SEC 31 – PROHIBITS ISSUE OF BEARER B/E, P/N PAYABLE TO BEARER: no person in India other than RBI or the Central Govt. is authorized to draw, accept make or issue any bill of exchange, hundi, Promissory note, drafts payable to bearer.

SEC 33 ASSETS OF THE ISSUE DEPARTMENT: The assets of issue deptt. consists of gold coins, gold bullion, foreign securities etc. The aggregate value of gold coins, gold bullion, and foreign securities held as assets and the aggregate value of the gold coins, and gold bullion shall not at any time be less than Rs 200 cr. and Rs 115 cr. respectively

SEC 42(1) – CASH RESERVE RATIO (CRR): Consequent to GOl’s notification of Sec. of RBI (Amendment) Act 2006 minimum statutory floor and ceiling limit no longer exists. Further, no interest will be payable on CRR balances w.e.f. fortnight beginning 31 March 2007.

CRR is maintained on fortnightly basis: Saturday to following Friday 14 days.


Borrower enjoying secured credit limits of Rs. 10 lac and above unsecured limits of Rs. 5 lac & above: Return as on last Friday of April and Oct. every year. (Half yearly).

Doubtful, loss and suit filed accounts with aggregate of outstanding Rs. 100 lac and above: Half-yearly March and September.

Basic Statistical Return (BSR): BSR-1 regarding borrower a/cs of above Rs. 2 lac. BSR-Il containing information about deposits with break-up into current, savings & term deposits.

SEC. 45-H-T: Regulations relating NBFC


RBI shall make public from time to time the standard rate at which it is prepared to buy or re-discount B/E or other commercial paper eligible for purchase under this Act.

Download “Bank Promotion Study Material” bp_live_class_1.pdf – Downloaded 330 times – 205 KB

I hope you would have like the article/ video regarding RBI act 1934 Most important sections. For any query feel free to contact us at banishagupta2099@gmail.com or post a comment below. We would like to hear from your side.

Accounting & Finance for Banking

Principles & Practices of Banking Module E Pdf

Module E PPB ePDFs available in our android app. Get them all at https://iibf.info/app

Accounting and Finance for Banking Module A Pdf

Accounting and finance for bankers all ePDFs are available in our an app. Get them all at https://iibf.info/app

Accounting and Finance for Banking Module A Pdf

Accounting and finance for bankers all ePDFs are available in our an app. Get them all at https://iibf.info/app

Leave a reply

Please enter your comment!
Please enter your name here

Learning Sessionshttps://iibf.info
Btech, JAIIB CAIIB and a tutor. Have taken more than 900+ hours online classes with more than 1,25,000 students


Free Live Classes


More from author

Principles and Practices of Banking – PPB Most important Questions

Hello friends, today in this article by the learning sessions we will share important questions and memory called topics of PPB that is principles...

JAIIB Exam Legal and Regulatory aspects of Banking Important Questions in Hindi

https://www.youtube.com/watch?v=6WUXxLvcKm8 Legal and regulatory aspects of Banking previous year questions for JAIIB exam are covered in this video. These questions are very important for legal...

Accounting and Finance Exam in One Attempt

Jaiib exam dates have already been announced by the IIBF. This is high time for preparing JAIIB. If you have also applied for JAIIB...

What next after CAIIB? IIBF Certifications at a Glance

What next after CAIIB? 15 Certificate Exams in Finance and Banking useful for Bankers:: Introduction As per the IBA settlement, bankers who have passed JAIIB and CAIIB...