Banking Regulation Act, 1949 — back to Table of Contents
Section 54. Protection of action taken under Act
(1) No suit or other legal proceeding lies against the Central Government, the Reserve Bank, or any officer, for anything done, or intended to be done, in good faith in pursuance of this Act.
(2) Except where the Act expressly provides otherwise, no suit or other legal proceeding lies against the Central Government, the Reserve Bank, or any officer for any damage caused, or likely to be caused, by anything done, or intended to be done, in good faith in pursuance of this Act.
This is a standard “good faith immunity” clause, shielding the regulators and their officers from liability for the honest exercise of their regulatory powers under the Act — it does not protect action taken in bad faith or outside the Act’s scope.
Note: Similar good-faith protection clauses appear throughout Indian regulatory statutes; this is the Banking Regulation Act’s version, covering the Central Government, the Reserve Bank, and their officers.
