Chapter IV — General Provisions

Section 49: Publication of bank rate

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 49 requires RBI to make public the bank rate from time to time and defines its statutory relevance.

Operative provisionOfficial sources mappedProvision-specific decode

Finin2min - Section 49 in 2 minutes

Legal effectSection 49 requires RBI to make public the bank rate from time to time and defines its statutory relevance.

Operative ruleThe bank rate is a distinct statutory rate and should not be confused with the policy repo rate, which is defined separately and determined through the MPC framework.

Connected lawCurrent RBI publications should be used to identify the prevailing bank rate and its relationship to other policy/penal rates.

File evidenceTreasury/legal documents should name the rate actually incorporated rather than use 'RBI rate' generically.

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 49 requires RBI to make public the bank rate from time to time and defines its statutory relevance.

Operative limb

The bank rate is a distinct statutory rate and should not be confused with the policy repo rate, which is defined separately and determined through the MPC framework.

Legal boundary

Current RBI publications should be used to identify the prevailing bank rate and its relationship to other policy/penal rates.

Worked practical example

Facts. A contract referencing 'Bank Rate' should not automatically substitute the repo rate after an MPC decision unless the contract or RBI framework expressly links them.

Compliance points and common mistakes

Do not decide the issue from the heading alone. Map the facts to the operative words of Section 49 and to each relevant subsection, clause, proviso or explanation shown above.
Keep the statutory question separate from the operational overlay. Current RBI publications should be used to identify the prevailing bank rate and its relationship to other policy/penal rates.
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Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.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 49 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 49?

Publication of bank rate: Section 49 requires RBI to make public the bank rate from time to time and defines its statutory relevance.

Which statutory limb should be checked first?

Scope - Section 49 requires RBI to make public the bank rate from time to time and defines its statutory relevance.

What is the next legal boundary?

Operative limb - The bank rate is a distinct statutory rate and should not be confused with the policy repo rate, which is defined separately and determined through the MPC framework.

What record should support the conclusion?

Section 49 file evidence: Treasury/legal documents should name the rate actually incorporated rather than use 'RBI rate' generically.

Primary sources

Source control for Section 49: 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.