Industrial Reconstruction Bank of India Act,1984
Act No : 62
Section :
Borrowing and acceptance of deposits by the Reconstruction Bank.
21. Borrowing and acceptance of deposits by the Reconstruction Bank.-(1) The Reconstruction Bank may, for the purpose of carrying out its functions under this Act-- (a) issue and sell bonds and debentures with or without guarantee of the Central Government; (b) borrow money from the Reserve Bank-- (i) repayable on demand or on the expiry of fixed periods, not exceeding ninety days from the date on which the money is so borrowed against the security of stocks, funds and securities (other than immovable property) in which a trustee is authorised to invest trust money by any law for the time being in force in India; (ii) against bills of exchange or promissory notes arising out of bona fide commercial or trade transactions, bearing two or more good signatures and maturing within five years from the date of borrowing; (iii) for any other purpose approved by the Central Government in accordance with the provisions of the Reserve Bank of India Act, 1934 (2 of 1934); (c) borrow money from such other authority, organisation, institution or trust in India as may be generally or specially approved by the Central Government; (d) accept deposits repayable after the expiry of a period which shall not be less than twelve months from the date of making of the deposit on such terms as may be generally or specially approved by the Reserve Bank. (2) The Central Government may, on a request being made to it by the Reconstruction Bank, guarantee the bonds and debentures issued by that Bank as to the repayment of principal and the payment of interest at such rate as may be fixed by that Government. (3) Notwithstanding anything contained in any other law for the time being in force, the bonds and debentures issued or sold by the Reconstruction Bank shall be approved securities for the purposes of the Indian Trusts Act, 1882 (2 of 1882), the Insurance Act, 1938 (4 of 1938), and the Banking Regulation Act, 1949 (10 of 1949).
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