Lawgist5Borrowing from Reserve Bank
(1) The Central Government shall not borrow from the Reserve Bank.
(2) Notwithstanding anything contained in sub-section (1), the Central Government may borrow from the Reserve Bank by way of advances to meet temporary excess of cash disbursement over cash receipts during any financial year in accordance with the agreements which may be entered into by that Government with the Reserve Bank:
Provided that any advances made by the Reserve Bank to meet temporary excess cash disbursement over cash receipts in any financial year shall be repayable in accordance with the provisions contained in sub-section (5) of section 17 of the Reserve Bank of India Act, 1934(2 of 1934).
1[(3) Notwithstanding anything contained in sub-section (1), the Reserve Bank may subscribe to the primary issues of Central Government Securities due to ground or grounds specified in the proviso to subsection (2) of section 4.]
(4) Notwithstanding anything contained in sub-section (1), the Reserve Bank may buy and sell the Central Government securities in the secondary market 2[or converts Central Government Securities held by it with other Securities of the Central Government as mutually agreed between the Reserve Bank and the Central Government].
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1. Subs. by Act 13 of 2018, s. 214, for sub-section (3) (w.e.f. 31-3-2018).
2. Ins. by s. 214, ibid. (w.e.f. 31-3-2018)
- 1 Short title, extent and commencement
- 2 Definitions
- 3 Fiscal policy statements to be laid before Parliament
- 4 Fiscal management principles
- 5 Borrowing from Reserve Bank
- 6 Measures for fiscal transparency
- 7 Measures to enforce compliance
- 7A Laying of review reports
- 8 Power to make rules
- 9 Rules to be laid before each House of Parliament
- 10 Protection of action taken in good faith
- 11 Jurisdiction of civil courts barred
- 12 Application of other laws not barred
- 13 Power to remove difficulties
