Penalties
Section 46 of the Banking Regulation Act, 1949 deals with penalties. Whoever in any return, balance-sheet or other document [or in any information required or furnished] by or under or for the purposes of any provision of this Act, wilfully makes a statement which is false in any material particular, knowing it to be false, or wilfully omits to make a material statem The Act came into force on 16 Mar 1949.
(1) Whoever in any return, balance-sheet or other document 1[or in any information required or furnished] by or under or for the purposes of any provision of this Act, wilfully makes a statement which is false in any material particular, knowing it to be false, or wilfully omits to make a material statement, shall be punishable with imprisonment for a term which may extend to three years and 2[or with fine, which may extend to one crore rupees or with both].
(2) If any person fails to produce any book, account or other document or to furnish any statement or information which under sub-section (2) of section 35 it is his duty to produce or furnish, or to answer any question relating to the business of a banking company which he is asked by 3[an officer making an inspection or scrutiny under that section], he shall be punishable with a fine which may extend to 4[twenty lakh rupees] in respect of each offence, and if he persists in such refusal, to a further fine which may extend to 5[fifty thousand rupees] for every day during which the offence continues.
(3) If any deposits are received by a banking company in contravention of an order under clause (a) of sub-section (4) of section 35, every director or other officer of the banking company, unless he proves that the contravention took place without his knowledge or that he exercised all due diligence to prevent it, shall be deemed to be guilty of such contravention and shall be punishable with a fine which may extend to twice the amount of the deposits so received.
6[(4) If any other provision of this Act is contravened or if any default is made in--
(i) complying with any requirement of this Act or of any order, rule or direction made or condition imposed thereunder, or
(ii) carrying out the terms of, or the obligations under, a scheme sanctioned under sub-section (7) of section 45,
by any person, such person shall be punishable with fine which may extend to 7[ 8[one crore rupees] or twice the amount involved in such contravention or default where such amount is quantifiable, whichever is more, and where a contravention or default is a continuing one, with a further fine which may extend to 9[one lakh rupees]] for every day, during which the contravention or default continues.]
10[(5) Where a contravention or default has been committed by a company, every person who, at the time the contravention or default was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the contravention or default and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the contravention or default was committed without his knowledge or that he exercised all due diligence to prevent the contravention or default.
(6) Notwithstanding anything contained in sub-section (5), where a contravention or default has been committed by a company, and it is proved that the same was committed with the consent or connivance of, or is attributable to any gross negligence on the part of, any director, manager, secretary or other officer of the company, such director manager, secretary or other officer shall also be deemed to be guilty of that contravention or default and shall be liable to be proceeded against and punished accordingly.
Explanation.--For the purposes of this section,--
(a) "company" means any body corporate and includes a firm or other association of individuals; and
(b) "director", in relation to a firm, means a partner in the firm.]
Section 46, The Banking Regulation Act, 1949 (Act 10 of 1949).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… Hence, service is complete. TCR also received. 2. It is submitted by the learned counsel for the appellant that the 2nd respondent is the accused who is alleged to have committed the offence punishable under Section 46 of the Banking Regulation Act, 1949. The trial court by the impugned judgment has acquitted the accused against which the present appeal has been filed. As the 2nd respondent/accused is no more, the appeal has abated. Interlocutory applications, if any pending, shall stand closed. Sd/- C.S.SUDHA JUDGE …
Questions about Section 46
What does Section 46 of the Banking Regulation Act deal with?
Section 46 of the Banking Regulation Act is headed "Penalties". Whoever in any return, balance-sheet or other document [or in any information required or furnished] by or under or for the purposes of any provision of this Act, wilfully makes a statement which is false in any material particular, knowing it to be false, or wilfully omits to make a material statem
How do I find court cases under Section 46 of the Banking Regulation Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Banking Regulation Act 1949 46, section 46 Banking Regulation Act 1949, section 46 of the Banking Regulation Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 46 of the Banking Regulation Act, and has it changed?
Its own text turns on section 35 (Inspection), section 45 (Power of Reserve Bank to apply to Central Government for suspension of business by a banking company and to prepare scheme of reconstitution or amalgamation), so none of them can safely be read on its own. 4 other provisions in this corpus refer back to it.
When did Section 46 of the Banking Regulation Act come into force?
Section 46 of the Banking Regulation Act, cited as Banking Regulation Act 1949 46, came into force on 16 Mar 1949, having been enacted on 10 Mar 1949. It is in force as at the date shown on this page.
Other sections of this Act
- 56. Act to apply to co-operative societies subject to modifications5544 words
- 45. Power of Reserve Bank to apply to Central Government for suspension of business by a banking company and to prepare scheme of reconstitution or amalgamation2310 words
- 10B. Banking company to be managed by whole time chairman1171 words
- 5. Interpretation1164 words
- 43A. Preferential payments to depositors1031 words
- 11. Requirement as to minimum paid-up capital and reserves988 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 20 Oct 2026. This page is not a substitute for legal advice.