Lawgist18Power of direct discount
1***When, in the opinion of the 2[Bank] 3***, a special occasion has arisen making it necessary or expedient that action should be taken 4[under this section] for the purposes of regulating credit in the interests of Indian 5*** trade, commerce, industry and agricultural, the Bank may, notwithstanding any limitation contained in 6*** section 17,--
7[(1) purchase, sell or discount any bill of exchange or promissory note though such bill or promissory note is not eligible for purchase or discount by the Bank under that section; or]
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9[(3) make loans or advances to--
(a) a State co-operative bank, or
(b) on the recommendation of a State co-operative bank, to a cooperative society registered within the area in which the State cooperative bank operates, or
(c) any other person,
repayable on demand or on the expiry of the fixed periods, not exceeding ninety days, on such terms and conditions as the Bank may consider to be sufficient.]
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1. The brackets and figures "(1)" omitted by Act 51 of 1974, s. 7 (w.e.f. 13-12-1974).
2. Subs. by Act 32 of 1951, s. 8, for "Central Board” (w.e.f. 1-11-1951).
3. Certain words omitted by Act 62 of 1948, s. 7 and the Schedule (w.e.f. 1-1-1949).
4. Subs. by Act 51 of 1974, s. 7, for "under this sub-section" (w.e.f. 13-12-1974).
5. The words "or Burman" omitted by Act 11 of 1947, s. 12 (w.e.f. 1-4-1947) which was inserted by the M.O. 1937.
6. The words, brackets, letters and figures "sub-clauses (a) and (b) of clause (2) or sub-clause (a) or (b) of clause (3) or clause (4) of" omitted by Act 51 of 1974, s. 7 (w.e.f. 13-12-1974).
7. Subs. by s. 7, ibid., for clause (1) (w.e.f. 13-12-1974).
8. Clause (2) omitted by Act 24 of 1978, s. 5 (w.e.f. 21-7-1978).
9. Subs. by Act 51 of 1974, s. 7, for clause (3) (w.e.f. 13-12-1974).
10. The proviso omitted by Act 62 of 1948, s. 7 and the Schedule (w.e.f. 1-1-1949).
11. Sub-section (2) omitted by Act 51 of 1974, s. 7 (w.e.f. 13-12-1974).
- 3 Establishment and incorporation of Reserve Bank
- 4 Capital of the Bank
- 5 [Omitted.]
- 6 Offices, branches and agencies
- 7 Management
- 8 Composition of the Central Board, and term of office of Directors
- 9 Local Boards, their constitution and functions
- 10 Disqualifications of Directors and members of Local Boards
- 11 Removal from and vacation of office
- 12 Casual vacancies and absences
- 13 Meetings of the Central Board
- 14 [Omitted.]
- 15 [Omitted.]
- 16 [Omitted.]
- 17 Business which the Bank may transact
- 18 Power of direct discount
- 18A Validity of loan or advance not to be questioned
- 19 Business which the Bank may not transact
