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Section 45 S – Reserve Bank of India Act,1934

Reserve Bank of India Act,1934

Section 45 S. Deposits not to be accepted in certain cases

1[Deposits not to be accepted in certain cases. (1) No person, being an individual or a firm or an unincorporated association of individuals shall, accept any deposit-

(i) If his or its business wholly or partly includes any of the activities specified in clause (c) of section 45-I; or

(ii) If his or its principal business is that of receiving of deposits under any scheme or arrangement or in any other manner, or lending in any manner:

PROVIDED that nothing contained in this sub-section shall apply to the receipt of money by an individual by way of loan from any of his relatives or to the receipt of money by a firm by way of loan from the relative or relatives of any of the partners.

(2) Where any person referred to in sub-section (1) holds any deposit on the lst day of April,1997 which is not in accordance with sub-section (1), such deposit shall be repaid by that person immediately after such deposit becomes due for repayment or within three years from the date of such commencement, whichever is earlier:

PROVIDED that if the bank is satisfied on an application made by any person to the bank that such person is unable to pay a part of the deposits for reasons beyond his control or such repayment shall cause extreme hardship to him, it may, by an order in writing, extend such period by a period not exceeding one year subject to such conditions as may be specified in the order.

(3) On and from the lst day of April,1997, no person referred to in sub-section (1) shall issue or cause to be issued any advertisement in any form for soliciting deposit.

Explanation: For the purposes of this section, a person shall be deemed to be a relative of another if, and only if-

(i) They are members of a Hindu undivided family; or

(ii) They are husband and wife; or

(iii) The one is related to the other in the manner indicated in the List of relatives below:

List of relatives

1. Father,2. Mother (including step-mother), 3. Son (including step-son), 4. Sons wife, 5. Daughter (including step-daughter), 6. Fathers father, 7. Fathers mother,8. Mothers mother,9. Mothers father,10. Sons son,11. Sons sons wife,12. Sons daughter,13. Sons daughters husband,14. Daughters husband,15. Daughters son,16. Daughters sons wife,17. Daughters daughter,18. Daughters daughters husband,19. Brother (including step-brother),20. Brothers wife,21, Sister (including step-sister),22. Sisters husband.]


1. Substituted by Reserve Bank of India (Amendment) Act,1997, w.e.f. 1/4/1997.

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Reserve Bank of India Act,1934

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