Section 48: Application of fines

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 48 — Application of fines. Allows a criminal court imposing a fine under the Act to direct all or part toward proceeding costs. Or reward of the informant; allocation follows the court order.

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 a criminal court imposing a fine under the Act to direct all or part toward proceeding costs or reward of the informant.

Condition / limitation

allocation follows the court order.

Source and effective-date control

Apply the wording of Section 48 that was in force on the event date; use the official Act and any applicable commencement/amending instrument linked on this page.

Professional application

Explain judicial allocation of fines/reward and the relevant discretion; retain the correct informant-reward concept.

Working flow

Identify the bank/entity class, event date and the factual trigger for Application of fines.

Apply the core Section 48 rule: Allows a criminal court imposing a fine under the Act to direct all or part toward proceeding costs or reward of the informant.

Test the next condition or limitation: allocation follows the court order.

Reconcile any amount, period, approval, filing or return mentioned in Section 48 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 48 evidence: the exact contravention and enabling provision.
Section 48 evidence: show-cause/complaint and service evidence.
Section 48 evidence: hearing submissions and adjudication/order.
Section 48 evidence: payment/recovery/court record and continuing-default calculation.

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

Common mistakes to avoid

For Section 48, avoid calculating a penalty without first classifying the statutory contravention.
For Section 48, avoid missing the hearing/payment/recovery sequence.
For Section 48, avoid assuming a regulatory monetary penalty and a criminal complaint can always proceed in parallel.

Related sections inside the Act

Use these links to read Section 48 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 48 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 48 on the event date.

Professional reading note

Professional reading note — Section 48 should be applied as a sequence, not as an isolated heading. Start with the factual trigger

for application of fines, then test the operative proposition: Allows a criminal court imposing a fine under the Act to direct all

or part toward proceeding costs or reward of the informant. Next confirm the limiting or interaction point: allocation follows the court order.

The working file should be capable of showing why the section applies to the relevant bank or person, which statutory version governs

the event date, and which documentary record proves the conclusion. Useful evidence on this page includes Section 48 evidence: the exact contravention

and enabling provision and Section 48 evidence: show-cause/complaint and service evidence. Read the provision in sequence with Section 47 — Cognizance of

offences and Section 47A — Power of Reserve Bank to impose penalty. This method keeps the legal answer tied to the provision

itself while allowing RBI directions, rules and later instruments to be layered on only where their own scope actually applies.

Primary official sources

Department of Financial Services — consolidated Banking Regulation Act, 1949

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.