Chapter IIIB — Non-Banking Institutions and Financial Institutions
Section 45MC: Power of Bank to file winding-up petition
Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026
Section 45MC permits RBI to apply for winding up of an NBFC on specified grounds, including inability to pay debts or statutory/regulatory circumstances identified in the section.
Operative provisionOfficial sources mappedProvision-specific decode
Finin2min - Section 45MC 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.
Rule 1
RBI's petition power is a supervisory remedy
Rule 2
it does not mean every regulatory breach automatically requires winding up.
Connected rule
Read the grounds with Sections 45MB and 45MBA because RBI may have different intervention tools depending on severity and public/depositor interest.
Worked practical example
Facts. A temporary reporting default should not be described as a Section 45MC winding-up case unless the statutory ground relied upon is actually satisfied.
Compliance points and common mistakes
- Do not decide the issue from the heading alone. Map the facts to the operative words of Section 45MC and to each relevant subsection, clause, proviso or explanation shown above.
- Keep the statutory question separate from the operational overlay. Read the grounds with Sections 45MB and 45MBA because RBI may have different intervention tools depending on severity and public/depositor interest.
- 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- Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.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 45MC 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 45MC?
Power of Bank to file winding-up petition: Section 45MC permits RBI to apply for winding up of an NBFC on specified grounds, including inability to pay debts or statutory/regulatory circumstances identified in the section.
Which statutory limb should be checked first?
Rule 1 - RBI's petition power is a supervisory remedy
What is the next legal boundary?
Rule 2 - it does not mean every regulatory breach automatically requires winding up.
What record should support the conclusion?
Section 45MC file evidence: An enforcement memo should identify the exact winding-up ground, supporting financial/regulatory evidence and the court/forum process applicable to the entity.
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 45MC: 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.