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Banking Regulation Act, 1949 · Section guide

Section 45: RBI application for moratorium and scheme of reconstruction or amalgamation

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 45 — RBI application for moratorium and scheme of reconstruction or amalgamation. Allows RBI to seek a Central Government moratorium and, during or independently of it as permitted, prepare a reconstruction/amalgamation scheme on public-interest, depositor, proper-management or banking-system grounds; moratorium cannot exceed six months in aggregate.

Official statute linkedProvision-specific anatomyPractical case + evidence file
Official text: DFS consolidated Act

Statutory structure and provision map

This map is a provision-specific explanation, not a substitute for the exact statutory text.

Core statutory rule

Allows RBI to seek a Central Government moratorium and, during or independently of it as permitted, prepare a reconstruction/amalgamation scheme on public-interest, depositor, proper-management or banking-system grounds.

Condition / limitation

moratorium cannot exceed six months in aggregate.

Source and effective-date control

Apply the wording of Section 45 that was in force on the event date; use the official Act and any applicable commencement/amending instrument linked on this page.

Professional application

Map moratorium, reconstruction/amalgamation, objections, scheme contents, transfer/employment effects and post-2020 provisions; add event-date examples.

Working flow

Identify the bank/entity class, event date and the factual trigger for RBI application for moratorium and scheme of reconstruction or amalgamation.
Apply the core Section 45 rule: Allows RBI to seek a Central Government moratorium and, during or independently of it as permitted, prepare a reconstruction/amalgamation scheme on public-interest, depositor, proper-management or banking-system grounds.
Test the next condition or limitation: moratorium cannot exceed six months in aggregate.
Reconcile any amount, period, approval, filing or return mentioned in Section 45 with the supporting record.
Record the conclusion, official source used, effective date and evidence that proves the statutory condition was met or not met.

Evidence / working-paper checklist

  • Section 45 evidence: High Court/Central Government/RBI order initiating the process.
  • Section 45 evidence: liquidator/scheme records and creditor/debtor lists.
  • Section 45 evidence: service/publication and statutory-timeline evidence.
  • Section 45 evidence: orders settling claims, calls, transfers, moratorium or amalgamation.

Retain the event date and source version with the file so the conclusion remains reproducible after later amendments.

Common mistakes to avoid

  • For Section 45, avoid applying ordinary Companies Act procedure without the banking-specific override.
  • For Section 45, avoid missing the special limitation or accelerated filing period.
  • For Section 45, avoid treating a private scheme as effective before the statutory sanction/order.

Related sections inside the Act

Section 44A — Procedure for amalgamation of banking companiesSection 45A — Part IIIA to override other lawsSection 45P — Reserve Bank to tender advice in winding-up proceedingSection 44B — Restriction on compromise or arrangement between banking company and creditorsSection 45B — High Court power to decide all claims in respect of banking companies

Use these links to read Section 45 in its statutory sequence, especially where the provision imports definitions, approvals, appeals, penalties or winding-up consequences from neighbouring sections.

Current-law source control

Source control: Section 45 is anchored to the official DFS consolidated text; later changes require separate Gazette verification.

Dated matters: verify any later Gazette, RBI direction or binding judgment affecting Section 45 on the event date.

Disclaimer

This Finin2min page is an educational and professional reference. Banking regulation is fact-, entity- and date-sensitive. Verify the current Act, Gazette amendments and commencement notifications, applicable RBI Rules/directions and the transaction record before acting or filing.