Chapter IIIB — Non-Banking Institutions and Financial Institutions

Section 45O: [Repealed.] Penalties

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 45O is a repealed historical penalty provision in Chapter IIIB.

Historical / non-operativeOfficial sources mappedProvision-specific decode

Current legal status

Section 45O is a repealed historical penalty provision in Chapter IIIB.

It should not be used for current NBFC enforcement; surviving Chapter V provisions and specific RBI enforcement powers now control.

Use today: Legacy cases may remain useful for historical interpretation but the breach date and amendment history are essential.

Historical reading note

A modern penalty matrix should omit Section 45O as a current sanction source.

Illustration. Quoting an old Section 45O fine in a 2026 NBFC compliance manual would materially misstate current enforcement law.

Compliance points and common mistakes

Do not decide the issue from the heading alone. Map the facts to the operative words of Section 45O and to each relevant subsection, clause, proviso or explanation shown above.
Keep the statutory question separate from the operational overlay. Legacy cases may remain useful for historical interpretation but the breach date and amendment history are essential.
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Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.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 45O 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 45O?

[Repealed.] Penalties: Section 45O is a repealed historical penalty provision in Chapter IIIB.

Which statutory limb should be checked first?

Rule 1 - It should not be used for current NBFC enforcement

What is the next legal boundary?

Rule 2 - surviving Chapter V provisions and specific RBI enforcement powers now control.

What record should support the conclusion?

Section 45O file evidence: A modern penalty matrix should omit Section 45O as a current sanction source.

Primary sources

Source control for Section 45O: 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.

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