Chapter IIIF — Monetary Policy

Section 45Z: Provisions of this Chapter to override other provisions of Act

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 45Z gives Chapter IIIF on monetary policy overriding effect over inconsistent provisions of the RBI Act.

Operative provisionOfficial sources mappedProvision-specific decode

Finin2min - Section 45Z in 2 minutes

Legal effectSection 45Z gives Chapter IIIF on monetary policy overriding effect over inconsistent provisions of the RBI Act.

Operative ruleThe clause ensures the statutory inflation-target/MPC framework prevails within the Act where there is inconsistency.

Connected lawIt does not override unrelated legislation generally and should be used only after a specific inconsistency within the RBI Act is identified.

File evidenceA monetary-policy legal note should cite the relevant Chapter IIIF provision first and use Section 45Z only if another RBI Act provision conflicts.

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 45Z gives Chapter IIIF on monetary policy overriding effect over inconsistent provisions of the RBI Act.

Operative limb

The clause ensures the statutory inflation-target/MPC framework prevails within the Act where there is inconsistency.

Legal boundary

It does not override unrelated legislation generally and should be used only after a specific inconsistency within the RBI Act is identified.

Worked practical example

Facts. A general RBI governance rule cannot be used to dilute the MPC's statutory decision process if Chapter IIIF expressly governs the point.

Compliance points and common mistakes

Do not decide the issue from the heading alone. Map the facts to the operative words of Section 45Z and to each relevant subsection, clause, proviso or explanation shown above.
Keep the statutory question separate from the operational overlay. It does not override unrelated legislation generally and should be used only after a specific inconsistency within the RBI Act is identified.
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Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.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 45Z 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 45Z?

Provisions of this Chapter to override other provisions of Act: Section 45Z gives Chapter IIIF on monetary policy overriding effect over inconsistent provisions of the RBI Act.

Which statutory limb should be checked first?

Scope - Section 45Z gives Chapter IIIF on monetary policy overriding effect over inconsistent provisions of the RBI Act.

What is the next legal boundary?

Operative limb - The clause ensures the statutory inflation-target/MPC framework prevails within the Act where there is inconsistency.

What record should support the conclusion?

Section 45Z file evidence: A monetary-policy legal note should cite the relevant Chapter IIIF provision first and use Section 45Z only if another RBI Act provision conflicts.

Primary sources

Source control for Section 45Z: 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.