Chapter V — Penalties

Section 58E: Cognizance of offences

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 58E regulates cognizance/prosecution of offences under the RBI Act, including who may file the complaint or authorise prosecution and procedural treatment by the criminal court.

Operative provisionOfficial sources mappedProvision-specific decode

Finin2min - Section 58E in 2 minutes

Legal effectSection 58E regulates cognizance/prosecution of offences under the RBI Act, including who may file the complaint or authorise prosecution and procedural treatment by the criminal court.

Operative ruleIt is a gateway provision: even where Section 58B defines an offence, prosecution must satisfy Section 58E's complaint/authorisation requirements.

Connected lawRead it with Section 58C for company/officer liability and Section 58G where RBI may use an administrative monetary penalty route for qualifying NBFC defaults.

File evidencePreserve complaint authority, sanction/authorisation, offence particulars and filing date/jurisdiction.

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 58E regulates cognizance/prosecution of offences under the RBI Act, including who may file the complaint or authorise prosecution and procedural treatment by the criminal court.

Operative limb

It is a gateway provision: even where Section 58B defines an offence, prosecution must satisfy Section 58E's complaint/authorisation requirements.

Legal boundary

Read it with Section 58C for company/officer liability and Section 58G where RBI may use an administrative monetary penalty route for qualifying NBFC defaults.

Worked practical example

Facts. A private person generally cannot commence an RBI Act prosecution merely by alleging a Section 58B breach if Section 58E requires a complaint by the authorised statutory officer.

Compliance points and common mistakes

Do not decide the issue from the heading alone. Map the facts to the operative words of Section 58E and to each relevant subsection, clause, proviso or explanation shown above.
Keep the statutory question separate from the operational overlay. Read it with Section 58C for company/officer liability and Section 58G where RBI may use an administrative monetary penalty route for qualifying NBFC defaults.
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 58E 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 58E?

Cognizance of offences: Section 58E regulates cognizance/prosecution of offences under the RBI Act, including who may file the complaint or authorise prosecution and procedural treatment by the criminal court.

Which statutory limb should be checked first?

Scope - Section 58E regulates cognizance/prosecution of offences under the RBI Act, including who may file the complaint or authorise prosecution and procedural treatment by the criminal court.

What is the next legal boundary?

Operative limb - It is a gateway provision: even where Section 58B defines an offence, prosecution must satisfy Section 58E's complaint/authorisation requirements.

What record should support the conclusion?

Section 58E file evidence: Preserve complaint authority, sanction/authorisation, offence particulars and filing date/jurisdiction.

Primary sources

Source control for Section 58E: 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.