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CMA Final · Corporate and Economic Laws · Laws and Regulations related to Banking Sector

Section 45Q of the RBI Act, 1934, states that the provisions of Chapter IIIB (non-banking institutions receiving deposits and financial institutions) have effect:

Chapter IIIB has effect notwithstanding anything inconsistent with it in any other law for the time being in force, or any instrument having effect by virtue of such law. So in case of conflict the Chapter prevails over the other law, including the Companies Act.

  1. ASubject to the provisions of the Companies Act in case of conflict
  2. BOnly where no State law deals with the subject
  3. CNotwithstanding anything inconsistent in any other law for the time being in force or any instrument having effect by virtue of such lawCorrect
  4. DOnly for NBFCs registered with the Bank before commencement

Explanation

Section 45Q gives Chapter IIIB overriding effect over any inconsistent law or instrument having effect by virtue of such law. It does not yield to the Companies Act or State law.

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