Reserve Bank of India Act,1934

Act No : 2

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Section : Business which the Bank may not transact

19. Business which the Bank may not transact.- Saves otherwise provided in sections 17, 18, 1*[42] and 45, the Bank may not-- (1) engage in trade or otherwise have a direct interest in any commercial, industrial, or other undertaking except such interest as it may in any way acquire in the course of the satisfaction of any of its claims : provided that all such interests shall be disposed of at the earliest possible moment; 2*[(2) purchase the shares of any banking company or of any other company, or grant loans upon the security of any such shares;] (3) advance money on mortgage of, or otherwise on the security of, immovable property or documents of title relating thereto, or become the owner of immovable property, except so far as is necessary for its own business premises and residences for its officers and servants; (4) make loans or advances; (5) draw or accept bills payable otherwise than on demand; (6) allow interest on deposits or current accounts. ---------------------------------------------------------------------- 1. Ins. by Act 38 of 1956, s. 2 (w.e.f. 6-10-1956). 2. Subs. by Act 32 of 1951, s. 9, for the former cl. 24k

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