Chapter V — Penalties

Section 58D: Application of section 58B barred

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 58D provides that Section 58B's specified penalty provisions do not apply to matters for which Section 42 itself supplies the relevant penalty/interest consequence, preventing duplicative punishment under the two routes within its scope.

Operative provisionOfficial sources mappedProvision-specific decode

Finin2min - Section 58D in 2 minutes

Legal effectSection 58D provides that Section 58B's specified penalty provisions do not apply to matters for which Section 42 itself supplies the relevant penalty/interest consequence, preventing duplicative punishment under the two routes within its scope.

Operative ruleThe provision is a conflict/route rule and should be checked whenever the underlying default is a scheduled-bank cash-reserve matter.

Connected lawStart with Section 42's own consequences and then test whether any separate offence exists outside the Section 58D exclusion.

File evidenceA CRR default file should identify the Section 42 deficiency, applicable statutory interest/penalty and why Section 58B is or is not additionally engaged.

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 provision is a conflict/route rule and should be checked whenever the underlying default is a scheduled-bank cash-reserve matter.

Legal boundary

Start with Section 42's own consequences and then test whether any separate offence exists outside the Section 58D exclusion.

Worked practical example

Facts. Do not add a generic Section 58B penalty to a pure Section 42 reserve deficiency if Section 58D directs that the Section 42 consequence is the operative route.

Compliance points and common mistakes

Do not decide the issue from the heading alone. Map the facts to the operative words of Section 58D and to each relevant subsection, clause, proviso or explanation shown above.
Keep the statutory question separate from the operational overlay. Start with Section 42's own consequences and then test whether any separate offence exists outside the Section 58D exclusion.
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 58D 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 58D?

Application of section 58B barred: Section 58D provides that Section 58B's specified penalty provisions do not apply to matters for which Section 42 itself supplies the relevant penalty/interest consequence, preventing duplicative punishment under the two routes within its scope.

Which statutory limb should be checked first?

Scope - Section 58D provides that Section 58B's specified penalty provisions do not apply to matters for which Section 42 itself supplies the relevant penalty/interest consequence, preventing duplicative punishment under the two routes within its scope.

What is the next legal boundary?

Operative limb - The provision is a conflict/route rule and should be checked whenever the underlying default is a scheduled-bank cash-reserve matter.

What record should support the conclusion?

Section 58D file evidence: A CRR default file should identify the Section 42 deficiency, applicable statutory interest/penalty and why Section 58B is or is not additionally engaged.

Primary sources

Source control for Section 58D: 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.