Chapter III — Central Banking Functions

Section 35: [Repealed.] Initial assets and liabilities

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 35 is repealed and formerly addressed initial assets and liabilities when the Issue Department was established.

Historical / non-operativeOfficial sources mappedProvision-specific decode

Current legal status

Section 35 is repealed and formerly addressed initial assets and liabilities when the Issue Department was established.

It has no continuing rule for current reserve backing or accounting.

Use today: Current analysis belongs under Sections 23, 33 and 34 plus RBI's current financial statements.

Historical reading note

Use the repealed section only to explain the historical transition at RBI's formation.

Illustration. A present reserve-backing question should not cite Section 35 simply because an old commentary discusses the opening Issue Department balance.

Compliance points and common mistakes

Do not decide the issue from the heading alone. Map the facts to the operative words of Section 35 and to each relevant subsection, clause, proviso or explanation shown above.
Keep the statutory question separate from the operational overlay. Current analysis belongs under Sections 23, 33 and 34 plus RBI's current financial statements.
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Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.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 35 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 35?

[Repealed.] Initial assets and liabilities: Section 35 is repealed and formerly addressed initial assets and liabilities when the Issue Department was established.

Which statutory limb should be checked first?

Scope - Section 35 is repealed and formerly addressed initial assets and liabilities when the Issue Department was established.

What is the next legal boundary?

Operative limb - It has no continuing rule for current reserve backing or accounting.

What record should support the conclusion?

Section 35 file evidence: Use the repealed section only to explain the historical transition at RBI's formation.

Primary sources

Source control for Section 35: 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.