Chapter IIIB — Non-Banking Institutions and Financial Institutions
Section 45MB: Power of Bank to prohibit acceptance of deposit and alienation of assets
Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026
Section 45MB empowers RBI, in the statutory circumstances, to prohibit an NBFC from accepting deposits and to restrain alienation of assets for the period/extent specified.
Operative provisionOfficial sources mappedProvision-specific decode
Finin2min - Section 45MB 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 45MB empowers RBI, in the statutory circumstances, to prohibit an NBFC from accepting deposits and to restrain alienation of assets for the period/extent specified.
Operative limb
The tools protect depositors and prevent dissipation of assets when RBI identifies qualifying non-compliance or risk.
Legal boundary
A prohibition order should be read alongside Sections 45MC/45MBA where winding-up or resolution measures are also relevant.
Worked practical example
Facts. After a Section 45MB order, continuing to roll over public deposits may still amount to acceptance of deposits; product operations must be tested against the exact prohibition.
Compliance points and common mistakes
- Do not decide the issue from the heading alone. Map the facts to the operative words of Section 45MB and to each relevant subsection, clause, proviso or explanation shown above.
- Keep the statutory question separate from the operational overlay. A prohibition order should be read alongside Sections 45MC/45MBA where winding-up or resolution measures are also relevant.
- 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- Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.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 45MB?
Power of Bank to prohibit acceptance of deposit and alienation of assets: Section 45MB empowers RBI, in the statutory circumstances, to prohibit an NBFC from accepting deposits and to restrain alienation of assets for the period/extent specified.
Which statutory limb should be checked first?
Scope - Section 45MB empowers RBI, in the statutory circumstances, to prohibit an NBFC from accepting deposits and to restrain alienation of assets for the period/extent specified.
What is the next legal boundary?
Operative limb - The tools protect depositors and prevent dissipation of assets when RBI identifies qualifying non-compliance or risk.
What record should support the conclusion?
Section 45MB file evidence: The NBFC should freeze affected products/asset disposals as required, identify existing obligations and maintain an order-compliance register.
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 45MB: 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.