Section 47 of the Banking Regulation Act, 1949 - Cognizance of Offences
Section 47 of the Banking Regulation Act, 1949 lays down who may initiate a valid criminal complaint for specified offences under the Act and identifies the level of court competent to try those offences.
Text of Section 47 - Cognizance of offences
No Court shall take cognizance of any offence punishable under sub-section (5) of section 36AA or section 46 except upon complaint in writing made by an officer of the Reserve Bank or, as the case may be, the National Bank generally or specially authorized in writing in this behalf by the Reserve Bank or, as the case may be, the National Bank, and no court other than that of a Metropolitan Magistrate or a Judicial Magistrate of the first class or any court superior thereto shall try any such offence.
Official source: The consolidated Banking Regulation Act, 1949 is available on the Government of India's India Code portal. The Act is Act No. 10 of 1949, enacted on 10 March 1949 and brought into force on 16 March 1949.
What does Section 47 mean?
Section 47 creates a procedural safeguard before a criminal court can act on the specified offences. In simple terms, a private person cannot ordinarily set the prosecution in motion merely by filing a complaint for an offence covered by this section. The complaint must satisfy the statutory authorization requirement.
- Written complaint is mandatory: Cognizance can be taken only on a complaint made in writing.
- Specified complainant: The complaint must be made by an officer of the Reserve Bank or, where applicable, the National Bank.
- Written authorization: The officer must be generally or specially authorized in writing for this purpose.
- Specified offences: The restriction applies to offences punishable under Section 36AA(5) or Section 46 of the Banking Regulation Act.
- Competent trial court: The offence may be tried by a Metropolitan Magistrate, a Judicial Magistrate of the First Class, or a court superior to those courts.
Meaning of important expressions
| Expression | Practical meaning in Section 47 |
|---|---|
| Cognizance | The stage at which a criminal court applies its judicial mind to an alleged offence for proceeding in accordance with law. Section 47 limits when that step may be taken for the offences specified in the provision. |
| Complaint in writing | The statutory trigger must be a written complaint; an informal allegation by itself does not satisfy the requirement stated in Section 47. |
| Generally or specially authorized | The officer filing the complaint must have written authority covering complaints generally or the particular matter concerned. |
| National Bank | The reference was introduced through the National Bank for Agriculture and Rural Development Act, 1981. In that legislative context, the National Bank is the National Bank for Agriculture and Rural Development (NABARD). |
Sections connected with Section 47
Section 47 should be read together with the provisions that create the relevant offence or penalty. In particular, Section 46 prescribes penalties for specified contraventions and defaults. Section 36AA deals with the Reserve Bank's power to remove managerial and other persons from office, and sub-section (5) is expressly referred to in Section 47.
Section 47 should also be distinguished from Section 47A, which deals with the Reserve Bank's power to impose monetary penalties in specified cases. Section 47 concerns criminal cognizance and the competent trial court; Section 47A is an administrative penalty provision.
Amendment history relevant to Section 47
| Amendment | Effect on Section 47 |
|---|---|
| Act 55 of 1963, Section 26 | Inserted the reference to sub-section (5) of Section 36AA with effect from 1 February 1964. |
| Act 61 of 1981, Section 61 and Second Schedule | Substituted the reference so that the provision covers the Reserve Bank or, as the case may be, the National Bank. |
| Act 1 of 1984, Section 39 | Substituted the present formulation identifying the Metropolitan Magistrate, Judicial Magistrate of the First Class, or a superior court as competent to try the offence, with effect from 15 February 1984. |
Why Section 47 matters in prosecution
The provision makes the identity and authority of the complainant a threshold issue. Before proceeding with a prosecution covered by Section 47, the complaint should disclose that it is in writing and has been made by an officer possessing the required written authorization. The trial must also be before a court of the level specified by the Act.
Related provisions
For the surrounding statutory scheme, see Section 46 - Penalties and Section 47A - Power of Reserve Bank to impose penalty. You can also return to the Banking Regulation Act, 1949 overview.