The Reserve Bank (Transfer to Public Ownership) Act, 1948

The Reserve Bank (Transfer to Public Ownership) Act, 1948

This Act brings the share capital of the Reserve Bank of India into public ownership and makes consequential amendments in the Reserve Bank of India Act, 1934. The Act aims to provide provisions with respect to the relations between the Central Government and the Bank and to make necessary changes.

The Act defines key terms such as "appointed day", "Bank", and "principal Act". On the appointed day, all shares in the capital of the Bank are deemed to be transferred free of trusts, liabilities, and encumbrances to the Central Government. The Central Government issues compensation to every person who was registered as a holder of any such shares before the appointed day.

The Act also provides for the vacation of office by existing office bearers and makes provisions for interim arrangements until the constitution of the Central Board under section 8 of the principal Act. The Governor or Deputy Governor, with the approval of the Central Government, may exercise all powers and do all acts and things which may be exercised or done by the Bank.

The Act empowers the Central Government to make rules for giving effect to its objects. These rules may provide for compensation payment and determination of persons to whom compensation is payable. The rules must be laid before each House of Parliament within 30 days of their making.