Important sections of the RBI Act 1934

The Indian Institute of Banking and Finance holds an exam to fill the position of Junior Associate of the Indian Institute of Bankers, which is currently vacant. The exam is held twice a year in two cycles, i.e., in May and November. To help you in your preparation for this exam, let’s have a look at Important sections of the RBI Act, 1934 in detail.

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Important sections of the RBI Act, 1934

Here are some important sections of the RBI

Section 3 :

Authorises the RBI to take over the management of the currency from the Central Government and carry on the business of banking in accordance with the provisions of this Act.

Section 7 :

Central Government may from time to time give directions to the RBI if it is a matter of public interest after consulting with the RBI Governor.

Section 17:

Mentions the functions of RBI

Section 18 :

Mentions the emergency provisions that RBI can take for the purpose of regulating credit in the interests of Indian trade, commerce, industry, and agriculture.

Section 21 :

It entrusts the RBI with the management of the public debt and with the issue of loans to the Central government.

Section 22 :

It gives the RBI the sole right to issue bank notes in the country.

Section 24 :

It mentions the denominations of the notes that can be in circulation. On the recommendation of the RBI, the Central Government can direct the discontinuance of the issue of any particular bank notes.

Section 28 :

It empowers the RBI to form laws to deal with lost, stolen, mutilated, or imperfect currency notes of the Government of India.

Section 31 :

Empowers RBI and the Central government to issue demand bills and promissory notes

Section 42 :

This section mentions the cash reserves that the scheduled banks have to keep with the RBI.

Section 45 :

Mentions the powers of RBI to collect credit information from financial institutions, determine policy and issue directions, constitute Monetary Policy Committee and target inflation

Section 46 :

Mentions the Reserve funds that Central Government needs to maintain with the RBI

Section 58 :

Gives the power to make regulations to the RBI board

Important sections of RBI Act, 1934 – FAQs

How to download the Important sections of the RBI Act, 1934 ebook?

Click on the given download link to download the Important sections of the RBI Act, 1934 ebook.

What is the exam date for JAIIB 2022 to be conducted?

JAIIB will be conducted on 8th, 9th & 22nd January 2022

Which laws regulate the banking sector in India?

Banking regulation act, 1934, and the Reserve Bank of India Act, 1934 regulate the banking sector in India.


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