Chapter IIIB — Non-Banking Institutions and Financial Institutions
Section 45Q: Chapter IIIB to override other laws
Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026
Section 45Q gives Chapter IIIB overriding effect where its provisions are inconsistent with other laws or instruments, subject to the statutory wording.
Operative provisionOfficial sources mappedProvision-specific decode
Finin2min - Section 45Q 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
The non-obstante rule is conflict-resolving
Rule 2
it does not mean Chapter IIIB displaces every other law that can operate consistently alongside it.
Connected rule
For each conflict, identify the precise competing rule, whether true inconsistency exists and whether another later/special statute alters the result.
Worked practical example
Facts. An NBFC remains subject to company, insolvency, consumer and other applicable laws unless a specific inconsistency with Chapter IIIB triggers Section 45Q's override.
Compliance points and common mistakes
- Do not decide the issue from the heading alone. Map the facts to the operative words of Section 45Q and to each relevant subsection, clause, proviso or explanation shown above.
- Keep the statutory question separate from the operational overlay. For each conflict, identify the precise competing rule, whether true inconsistency exists and whether another later/special statute alters the result.
- 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- Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.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 45Q 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 45Q?
Chapter IIIB to override other laws: Section 45Q gives Chapter IIIB overriding effect where its provisions are inconsistent with other laws or instruments, subject to the statutory wording.
Which statutory limb should be checked first?
Rule 1 - The non-obstante rule is conflict-resolving
What is the next legal boundary?
Rule 2 - it does not mean Chapter IIIB displaces every other law that can operate consistently alongside it.
What record should support the conclusion?
Section 45Q file evidence: Legal opinions should show the conflict analysis rather than cite Section 45Q as a blanket supremacy clause.
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 45Q: 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.