Chapter III — Central Banking Functions

Section 32: [Repealed.] Penalty

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 32 is a repealed historical penalty provision.

Historical / non-operativeOfficial sources mappedProvision-specific decode

Current legal status

Section 32 is a repealed historical penalty provision.

It no longer supplies a present penalty for currency-related conduct; current offences and penalties must be traced to surviving provisions, including Chapter V and other applicable statutes.

Use today: Historical judgments may cite Section 32, so the date of the conduct and the then-applicable version matter.

Historical reading note

A legal note should state the repeal status before discussing any older case under the section.

Illustration. A modern compliance memo should not quote the former Section 32 penalty amount as a current sanction for breach of Section 31.

Compliance points and common mistakes

Do not decide the issue from the heading alone. Map the facts to the operative words of Section 32 and to each relevant subsection, clause, proviso or explanation shown above.
Keep the statutory question separate from the operational overlay. Historical judgments may cite Section 32, so the date of the conduct and the then-applicable version matter.
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Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.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 32 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 32?

[Repealed.] Penalty: Section 32 is a repealed historical penalty provision.

Which statutory limb should be checked first?

Rule 1 - It no longer supplies a present penalty for currency-related conduct

What is the next legal boundary?

Rule 2 - current offences and penalties must be traced to surviving provisions, including Chapter V and other applicable statutes.

What record should support the conclusion?

Section 32 file evidence: A legal note should state the repeal status before discussing any older case under the section.

Primary sources

Source control for Section 32: 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.