Chapter IV — General Provisions

Section 46C: National Industrial Credit (Long Term Operations) Fund

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 46C establishes the National Industrial Credit (Long Term Operations) Fund and provides for RBI contributions/use of the fund for the industrial-credit institutions and purposes specified in the section.

Operative provisionOfficial sources mappedProvision-specific decode

Finin2min - Section 46C in 2 minutes

Legal effectSection 46C establishes the National Industrial Credit (Long Term Operations) Fund and provides for RBI contributions/use of the fund for the industrial-credit institutions and purposes specified in the section.

Operative ruleThe fund supports longer-term industrial credit through designated institutions rather than functioning as a retail lending window.

Connected lawRead it with relevant Section 17 powers permitting RBI loans/advances or purchase of bonds/debentures from the fund.

File evidenceFund analysis should identify eligible institution, statutory purpose, contribution/source and the transaction through which support is provided.

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

Operative limb

The fund supports longer-term industrial credit through designated institutions rather than functioning as a retail lending window.

Legal boundary

Read it with relevant Section 17 powers permitting RBI loans/advances or purchase of bonds/debentures from the fund.

Worked practical example

Facts. A private industrial company cannot claim direct access to Section 46C merely because its project is industrial; the statutory channel runs through the specified financial institutions and authorised instruments.

Compliance points and common mistakes

Do not decide the issue from the heading alone. Map the facts to the operative words of Section 46C and to each relevant subsection, clause, proviso or explanation shown above.
Keep the statutory question separate from the operational overlay. Read it with relevant Section 17 powers permitting RBI loans/advances or purchase of bonds/debentures from the fund.
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Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.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 46C 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 46C?

National Industrial Credit (Long Term Operations) Fund: Section 46C establishes the National Industrial Credit (Long Term Operations) Fund and provides for RBI contributions/use of the fund for the industrial-credit institutions and purposes specified in the section.

Which statutory limb should be checked first?

Scope - Section 46C establishes the National Industrial Credit (Long Term Operations) Fund and provides for RBI contributions/use of the fund for the industrial-credit institutions and purposes specified in the section.

What is the next legal boundary?

Operative limb - The fund supports longer-term industrial credit through designated institutions rather than functioning as a retail lending window.

What record should support the conclusion?

Section 46C file evidence: Fund analysis should identify eligible institution, statutory purpose, contribution/source and the transaction through which support is provided.

Primary sources

Source control for Section 46C: 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.