The Reserve Bank of India Act, 1934

(1) This Act may be called the Reserve Bank of IndiaAct, 1934. 1[(2) It extends to the whole of India 2***.] (3) This section shall come into force at once, and the remaining provisions of this Act shall comeinto force on such date or dates3 as the 4[Central Government] may, by notification in the Gazette ofIndia, appoint.

In this Act, unless there is anything repugnant in the subject or context,-- 1* * * * * 2[(aii)] the Bank means the Reserve Bank of India constituted by this Act; 3[(aiii)] Bank for International Settlements means by body corporate established with the saidname under the law of Switzerland in pursuance of an agreement dated the 20th January, 1930, signedat The Hague;] (b) the Central Board means the Central Board of Directors of the Bank; 4* * * * * 5[(bva) Consumer Price Index means the Consumer Price Index Combined published by theGovernment of India from time to time;] 6[7[(bvi)] Deposit Insurance Corporation means the Deposit Insurance Corporation establishedunder section 3 of the Deposit Insurance Corporation Act, 1961 (47 of 1961);] 8* * * * * 9* * * * * 10[(bviiia)Exim Bank means the Export-Import Bank of India established under the ExportImport Bank of India Act, 1981 (28 of 1981);] 11[(bix) foreign currency and foreign exchange have the meanings respectively assigned tothem in the Foreign Exchange Regulation Act, 1973(46 of 1973); (c) Industrial Finance Corporation means the Industrial Finance Corporation of Indiaestablished under the Industrial Finance Corporation Act, 1948 (15 of 1948);] 5[(ci) inflation means the year wise change in monthly Consumer Price Index expressed interms of percentage; (cii) inflation target means the inflation target determined in accordance with sub-section (1) ofsection 45ZA;] 12[(ca) International Development Association means the Association referred to in theInternational Development Association (Status, Immunities and Privileges) Act, 1960 (32 of 1960); (cb) International Finance Corporation means the Corporation referred to in the InternationalFinance Corporation (Status, Immunities and Privileges) Act, 1958 (42 of 1958); (cc) International Monetary Fund and International Bank for ReconstructionandDevelopment means respectively the International Fund and the International Bank, referredto in the International Monetary Fund and Bank Act, 1945;] 5[(cci) Monetary Policy Committee means the Committee constituted under sub-section (1) ofsection 45ZB;] 13 [(ccc) National Bank means the National Bank for Agriculture and Rural Developmentestablished under section 3 of the National Bank for Agriculture and Rural Development Act, 1981(61 of 1981);] 14[(ccci) National Bank for Financing Infrastructure and Development means the Institutionestablished under section 3 of the National Bank for Financing Infrastructure and Development Act,2021; (cccii) other development financial institution means a development financial institutionlicensed under section 29 of the National Bank for Financing Infrastructure and Development Act,2021;] 15 [(cccc) National Housing Bank means the National Housing Bank established undersection 3 of the National Housing Bank Act, 1987 (53 of 1987);] 5[(cccci) Policy Rate means the rate for repo-transactions under sub-section (12AB) of section17;] 16* * * * * 17[(cv) Reconstruction Bank means the Industrial Reconstruction Bank of India establishedunder section 3 of the Industrial Reconstruction Bank of India Act, 1984 (62 of 1984);] (d) rupee coin means 18*** rupees which are legal tender 19[in 20[India]] under the provisions ofthe Indian Coinage Act, 1906 (3 of 1906);21*** (e) scheduled bank means a bank included in the Second Schedule; 22[(el) Small Industries Bank means the Small Industries Development Bank of India establishedunder section 3 of the Small Industries Development Bank of India Act, 1989 (39 of 1989);] 23[(ea) Sponsor Bank means a Sponsor Bank as defined in the Regional Rural Banks Act, 1976(21 of 1976);] 24[25[(eb)] State Bank means the State Bank of India constituted under the State Bank of IndiaAct, 1955 (23 of 1955);] 26* * * * * 27[(fi) State Financial Corporation means any State Financial Corporation established under theState Financial Corporations Act, 1951 (63 of 1951);] 28* * * * * 29[(g) Unit Trust means the Unit Trust of India established under section 3 of the Unit Trust ofIndia Act, 1963 (52 of 1963);] 30 [(h) agricultural operations, central co-operative bank, co-operative society, crops,marketing of corps, pisciculture, regional rural bank and State co-operative bank shall havethe meanings respectively assigned to them in the National Bank for Agriculture and RuralDevelopment Act, 1981 (61 of 1981); (i) co-operative bank, co-operative credit society, director, primary agricultural creditsociety, primary co-operative bank and primary credit society shall have the meaningsrespectively assigned to them in Part V of the Banking Regulation Act, 1949 (10 of 1949).]

1[3. Establishment and incorporation of Reserve Bank.--(1) A bank to be called the Reserve Bankof India shall be constituted for the purposes of taking over the management of the currency from the2[Central Government] and of carrying on the business of banking in accordance with the provisions ofthis Act. (2) The Bank shall be a body corporate by the name of the Reserve Bank of India, having perpetualsuccession and a common seal, and shall by the said name sue and be sued.

1[4. Capital of the Bank.--The capital of the Bank shall be five crores of rupees.]

[Increase and reduction of share capital.]--Omitted by the Reserve Bank (Transfer to PublicOwnership)Act,1948 (62 of1948), s. 7 and the Schedule (w.e.f. 1-1-1949).