Chapter III — Central Banking Functions

Section 29: Bank exempt from stamp duty on bank notes

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 29 exempts bank notes issued by RBI from stamp duty.

Operative provisionOfficial sources mappedProvision-specific decode

Finin2min - Section 29 in 2 minutes

Legal effectSection 29 exempts bank notes issued by RBI from stamp duty.

Operative ruleThe exemption concerns the bank note instrument itself and does not create a general stamp-duty exemption for contracts, guarantees, securities or other documents involving RBI.

Connected lawFor transaction documentation, determine whether the document is actually a bank note or a separate chargeable instrument.

File evidenceDo not extend the exemption by analogy to promissory notes, agreements or security documents.

Statutory structure and clause / subsection decode

This map separates the operative limbs of this provision so thresholds, powers, conditions and exceptions are not collapsed into a single summary.

Scope

Section 29 exempts bank notes issued by RBI from stamp duty.

Operative limb

The exemption concerns the bank note instrument itself and does not create a general stamp-duty exemption for contracts, guarantees, securities or other documents involving RBI.

Legal boundary

For transaction documentation, determine whether the document is actually a bank note or a separate chargeable instrument.

Worked practical example

Facts. A security agreement executed in favour of RBI remains subject to its own stamp-law analysis; Section 29 does not exempt it because RBI is a party.

Compliance points and common mistakes

Do not decide the issue from the heading alone. Map the facts to the operative words of Section 29 and to each relevant subsection, clause, proviso or explanation shown above.
Keep the statutory question separate from the operational overlay. For transaction documentation, determine whether the document is actually a bank note or a separate chargeable instrument.
Do not convert an exception, exemption or discretionary RBI/Government power into an automatic entitlement. Record the authority, conditions and effective date.
Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.

Connected provisions and instruments

Section 29 has no universal instrument dependency in this package. Add an RBI circular or direction only when its subject, entity and effective date cover the issue being analysed.

Questions and answers

What is the purpose of Section 29?

Bank exempt from stamp duty on bank notes: Section 29 exempts bank notes issued by RBI from stamp duty.

Which statutory limb should be checked first?

Scope - Section 29 exempts bank notes issued by RBI from stamp duty.

What is the next legal boundary?

Operative limb - The exemption concerns the bank note instrument itself and does not create a general stamp-duty exemption for contracts, guarantees, securities or other documents involving RBI.

What record should support the conclusion?

Section 29 file evidence: Do not extend the exemption by analogy to promissory notes, agreements or security documents.

Primary sources

Source control for Section 29: use the official consolidated RBI Act for the statutory text and footnotes, then separately reconcile any post-Finance Act 2022 amendment, commencement notification or RBI instrument relevant to the event date.