Chapter IIIB — Non-Banking Institutions and Financial Institutions
Section 45J: Bank to regulate or prohibit issue of prospectus or advertisement soliciting deposits of money
Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026
Section 45J empowers RBI to regulate or prohibit prospectuses or advertisements used by non-banking institutions to solicit deposits of money.
Operative provisionOfficial sources mappedProvision-specific decode
Finin2min - Section 45J in 2 minutes
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 45J empowers RBI to regulate or prohibit prospectuses or advertisements used by non-banking institutions to solicit deposits of money.
Operative limb
The power addresses how deposits are invited from the public and can impose conditions, content requirements or prohibitions through RBI directions/orders.
Legal boundary
For deposit-taking NBFCs, apply the current RBI (NBFC – Acceptance of Public Deposits) Directions, 2025 together with consumer/advertising rules that may also apply.
Worked practical example
Facts. An NBFC cannot cure an ineligible deposit product merely by adding a risk disclaimer; product permissibility and Section 45J advertising requirements are separate tests.
Compliance points and common mistakes
- Do not decide the issue from the heading alone. Map the facts to the operative words of Section 45J and to each relevant subsection, clause, proviso or explanation shown above.
- Keep the statutory question separate from the operational overlay. For deposit-taking NBFCs, apply the current RBI (NBFC – Acceptance of Public Deposits) Directions, 2025 together with consumer/advertising rules that may also apply.
- 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- Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.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
Questions and answers
What is the purpose of Section 45J?
Bank to regulate or prohibit issue of prospectus or advertisement soliciting deposits of money: Section 45J empowers RBI to regulate or prohibit prospectuses or advertisements used by non-banking institutions to solicit deposits of money.
Which statutory limb should be checked first?
Scope - Section 45J empowers RBI to regulate or prohibit prospectuses or advertisements used by non-banking institutions to solicit deposits of money.
What is the next legal boundary?
Operative limb - The power addresses how deposits are invited from the public and can impose conditions, content requirements or prohibitions through RBI directions/orders.
What record should support the conclusion?
Section 45J file evidence: Campaign files should retain the advertisement, approved product terms, deposit eligibility, prescribed disclosures, approval evidence and publication date.
Primary sources
- Department of Financial Services - consolidated RBI Act (states amendments through Finance Act, 2022)
- India Code - Reserve Bank of India Act, 1934
Source control for Section 45J: 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.