Banking Regulation Act, 1949 — back to Table of Contents
Section 46. Penalties
(1) Anyone who wilfully makes a false statement in any material particular (knowing it to be false), or wilfully omits a material statement, in a return, balance-sheet or other document required under this Act, is punishable with imprisonment up to three years, or fine up to one crore rupees, or both.
(2) Failing to produce a book, account, document or statement, or to answer a question, that an inspecting or scrutinising officer under section 35 is entitled to ask, is punishable with a fine of up to twenty lakh rupees per offence, and, on continued refusal, a further fine of up to fifty thousand rupees for every day the refusal continues.
(3) If a banking company receives deposits in contravention of an order made under section 35(4)(a), every director or officer is deemed guilty of the contravention (unless they prove it happened without their knowledge or that they exercised due diligence to prevent it) and is punishable with a fine of up to twice the amount of the deposits so received.
(4) Contravention of any other provision of the Act, or default in complying with any requirement, order, rule or condition under it — or in carrying out the terms of a scheme sanctioned under section 45(7) — is punishable with a fine of up to one crore rupees or twice the amount involved (whichever is more), plus, for continuing contraventions, a further fine of up to one lakh rupees for every day the default continues.
(5) Where a company commits a contravention or default, every person in charge of, and responsible to, the company for the conduct of its business at the relevant time is deemed guilty along with the company, and liable to be proceeded against accordingly (subject to a due-diligence defence).
(6) Notwithstanding sub-section (5), where the contravention is shown to have been committed with the consent or connivance of, or is attributable to gross negligence by, a director, manager, secretary or other officer of the company, that person is also deemed guilty and liable to be proceeded against.
Note: This section has been amended several times, most significantly to substitute modern rupee amounts (up to one crore rupees, twenty lakh rupees, etc.) for the much smaller amounts fixed in 1949, most recently by the Banking Laws (Amendment) Act, 2012.
