RBI Act, 1934

	RBI Act, 1934
	Reserve Bank of India, 1934
Section	Description
3	The reserve Bank was constituted for taking over management of
	currency from central govt,
3(2)	Body corporate having perpetual succession and a common seal
4	Capital of RBI is Rs.5 crore
7(1)	The Govt. has Power to Issue Directions to the RBI in public
	interest after consultation with the Governor.
7(2)	general superintendence and direction of the affairs and business
	of the RBI to Central Govt.
8	RBI is headed by Governor
8(a)	Govt can appoint 4 Deputy Governors for RBI
8(2)	Govt. may appoint a Deputy Governor of RBI as Chairman of
	NABARD
17	Businesses which the Reserve Bank may transact
17(1)	Reserve Bank is authorised to accept on money on deposit from
	the Central/State Govt. local authorities, banks Without Interest
	No interest on deposit accounts of Cental and State Govt.
17(4)	Reserve Bank is authorised to grant loans and advances to any
	scheduled bank, cooperative banks, SFC's repayable on deman
	or on expiry of fixed periods not exceeding 180 days
17(4)	against the security of stocks, funds and trustee securities, gold or
	silver or documents of title to the same, such bills of exchange
	and promissory notes

17(5)		Loans  and  advances  to  Central  and  State  Govt.  which  are
		repayable not later than 3 months.
19		RBI has been prohibited making loans and advances, drawing
		and accepting bills payable otherwise than on demand, engage in
		trade  or  otherwise  have  a  direct  interest  in  any  commercial,
		industrial, or other undertaking
20		Requires the Reserve Bank to undertake to :
20		Accept monies,make payments, carry out exchange, remittance
		and other banking operations of the Central Govt.
20,21,21A		Reserve Bank manags the public debt and issues new loans on
		behalf of the Central and State Govt. Banker to Govt.
22		Sole right to issue bank notes
23		Issue Dept : Issue of bank notes
23		The assets of Issue Dept of Reserve Bank shall not be subject to
		any liability other than the liabilities of the Issue Dept.
24		Prohibits  issuance  of  bank  notes  by  Reserve  Bank  for
		denomination exceeding Rs.10,000
25		The design, form and materialof  bank  notes is approved by
		Central Govt
27		Prohibits the Reserve Bank from reissuing bank notes which are
		torn, defaced or excessively soiled
29		No Stamp Duty is payable on the bank  notes  issued by the
		Reserve Bank
31		Banks are Prohibited from issuing Demand Drafts payable to
		bearer
33		Assets of Issue Department : Gold Coin, Gold Bullion, foreign
		securities and rupee securities
42(1)		Every scheduled bank has to maintain cash reserve with reserve
		banks: Average daily balance of 3% total of demand and time
		liabilities
42(2)		Every Scheduled Bank shall submit to Reserve Bank a return at
		the close of each alternate Friday showing its demand and time
		liabilities, cash in hand and with other banks, investments etc.
42(6)		Inclusion in and Exclusion from the Second Schedule of a bank
45		Collects credit information from banks
45		calls for returns containing credit information from banks
45-IA		NBFC:obtain a certificate of registration from Reserve Bank
45-IA		NBFC:shall have net owned fund of RS.25 lakhs or such sum not
		exceeding Rs. 200 lakhs
49		Bank Rate is defined