Reserve Bank of India Act,1934
Act No : 2
Section : Business which the Bank may transact
17. Business which the Bank may transact.- The Bank shall be authorised to carry on and transact the several kinds of business hereinafter specified, namely:-- (1) the accepting of money on deposit without interest from, and the collection of money for 1***, the Central Government, 2***, the State Governments 3***, 4***, local authorities, banks and any other persons; (2) (a) the purchase, sale and rediscount of bills of exchange and promissory notes, 5*[drawn on 6*[and payable in India]] and arising out of bona fide commercial or trade transactions bearing two or more good signatures, one of which shall be that of a scheduled bank 7*[or a State co-operative bank] 8*[or any financial institution, which is predominantly engaged in the acceptance or discounting of bills of exchange and promissory notes and which is approved by the Bank in this behalf] 9***, and 10*[maturing,-- (i) in the case of bills of exchange and promissory notes arising out of any such transaction relating to the export of goods from India, within one hundred and eighty days, and ---------------------------------------------------------------------- 1. The words "the Secretary of State" were rep. by the A. O. 1948. 2. The words "the Federal Railway Authority" were rep. ibid. 3. The words "the Government of Burma, the Burma Railway Board were rep. by Act 11 of 1947, s. 11 (w.e.f. 1-4-1947). 4. The words "Part B States" rep. by Act 32 of 1951, s. 7. 5. Subs. by the M. O. 1937, for "drawn on and payable in India". 6. Subs. by Act 11 of 1947, s. 11, for "India or Burma and payable in India or Burma" (w.e.f. 1-4-1947). 7. Ins. by Act 32 of 1951, s. 7. 8. Ins. by Act 51 of 1974, s. 6. 9. The words "or a Burma Scheduled bank" ins. by the M.O. 1937, were rep. by Act 11 of 1947, s. 11. 10. Subs. by Act 35 of 1962, s. 3, for certain words. 19 (ii) in any other case, within ninety days, from the date of such purchase or rediscount, exclusive of days of grace;] (b) the purchase, sale and rediscount of bills of exchange and promissory notes, 1*[drawn 2*[and payable in India]] and bearing two or more good signatures, one of which shall be that of a scheduled bank 3*[or a State co-operative bank] 4*[or any financial institution, which is predominantly engaged in the acceptance or discounting of bills of exchange and promissory notes and which is approved by the Bank in this behalf] and drawn or issued for the purpose of 5*[financing agricultural operations] or the marketing of crops, and maturing within 6*[fifteen months] from the date of such purchase or rediscount, exclusive of days of grace; 7* * * * * 8*[(bb) the purchase, sale and rediscount of bills of exchange and promissory notes drawn and payable in India and bearing two or more good signatures, one of which shall be that of a State co-operative bank or a State Financial Corporation 4*[or any financial institution, which is predominantly engaged in the acceptance or discounting of bills of exchange and promissory notes and which is approved by the Bank in this behalf], and drawn or issued for the purpose of financing the production or marketing activities of cottage and small-scale industries approved by the Bank and maturing within twelve months from the date of such purchase or rediscount, exclusive of days of grace, provided that the payment of the principal and interest of such bills of exchange or promissory notes is fully guaranteed by the State Government;] ---------------------------------------------------------------------- 1. Subs. by the M. O. 1937, for "drawn and payable in India". 2. Subs. by Act 11 of 1947, s. 11, for "either in India or Burma and payable either in India or Burma". 3. Subs. by s. 11, ibid., for certain words. 4. Ins. by Act 51 of 1974, s. 6. 5. Subs. by s. 6, ibid., for certain words. 6. Subs. by Act 32 of 1951, s. 7, for "nine months". 7. Explanation omitted by Act 23 of 1964, s. 4 (w.e.f. 1-3-1966). 8. Ins. by Act 54 of 1953, s. 3. 20 (c) the purchase, sale and rediscount of bills of exchange and promissory notes 1*[drawn 2*[and payable in India]] and bearing the signature of a scheduled bank 3*** and issued or drawn for the purpose of holding or trading in securities of 4*the Central Government 5*[or a State Government,]] 6* and maturing within ninety days from the date of such purchase or rediscount, exclusive of days of grace; (3) (a) the purchase from and sale to scheduled banks 7*** of 8*[foreign exchange] 9***; 10*[(b) the purchase, sale and rediscount of bills of exchange (including treasury bills) drawn in or on any place in any country outside India which is a member of the international Monetary Fund and maturing,-- (i) in the case of bills of exchange arising out of any bona fide transaction relating to the export of goods from India, within one hundred and eighty days, and (ii) in any other case, within ninety days, from the date of such purchase or rediscount: Provided that no such purchase, sale or rediscount shall be made in India except with a scheduled bank or a State co-operative bank;] 11* * * * * * 12*[(3A) the making to any scheduled bank or State co- operative bank, of loans and advances, against promissory notes of such bank, repayable on demand or on the expiry of fixed periods not exceeding one hundred and eighty days: Provided that the borrowing bank furnishes a declaration in writing, to the effect that-- (i) it holds bills of exchange arising out of any transaction relating to the export of goods from India, of a value not less than the amount of such loans or advances,-- ---------------------------------------------------------------------- 1. Subs. by the M. O. 1937, for "drawn and payable in India". 2. Subs. by Act 11 of 1947, s. 11, for "either in India or Burma and payable either in India or Burma". 3. The words "or a Burma schedule bank" ins. by the M. O. 1937, rep. by Act 11 of 1947, s. 11. 4. Subs. by the M. O. 1937, for "the G. of I or a L. G.". 5. Subs. by Act 11 of 1947, s. 11, for "a P. G., or the Govt, of Burma,". 6. Certain words rep. by Act 32 of 1951, s. 7. 7. The words "and Burma scheduled banks" ins. by the M. O. 1937, rep. by Act 11 of 1947, s. 11. 8. Subs. by Act 62 of 1948, s. 7 and Sch., for "sterling" (w.e.f. 1- 1-1949). 9. Certain words omitted by Act 24 of g 1978, s. 4, (w.e.f. 21-7- 1978). 10. Subs. by Act 35 of 1962, s. 3, for sub-clause (b). 11. Cl. (c) rep. by Act 62 of 1948, s. 7 and Sch. 12. Ins. by Act 35 of 1962, s. 3. 21 (a) drawn in India and on any place in any country outside India which is a member of the International Monetary Fund or in any other country notified in this behalf by the Bank in the Gazette of India, and 1*[(b) maturing not later than one hundred and eighty days from the date of the loan or advance, and it will, so long as any part of such loans and advances remains unpaid, continue to hold such bills of exchange of a value not less than the amount of such loans or advances outstanding for the time being; or] 2*[(ii) it has granted a pre-shipment loan or advance to an exporter or any other person in India in order to enable him to export goods from India, the amount of the loan or advance drawn and outstanding at any time being not less than the outstanding amount of the loan or advance obtained by the borrowing bank from the Bank,] 3*[(3B) the making to any scheduled bank or State co-operative bank of loans and advances repayable on demand or on the expiry of fixed periods not exceeding one hundred and eighty days against promissory notes of such bank: Provided that the borrowing bank furnishes a declaration in writing to the effect that it has made loans and advances for bona fide commercial or trade transactions or for financing agricultural operations or the marketing of crops or for other agricultural purposes as set out in the declaration and the said declaration includes such other particulars as may be required by the Bank;] (4) the making to 4*** local authorities, scheduled banks 5*[,6* State co-operative banks 7*[and State Financial Corporations 8***,]] of loans and advances, ---------------------------------------------------------------------- 1. Subs. by Act 58 of 1968, s. 24, for sub-clause (b) (w.e.f. 1-2- 1969). 2. Subs. by s. 24, ibid., for cl. (ii) (w.e.f. 1-2-1969). 3. Ins. by Act 51 of 1974, s. 6 4. The words "Part B States" rep. by Act 32 of 1951, s. 7. 5. Subs. by the M. O. 1937, for "and provincial co-operative banks". 6. The words "Burma scheduled banks" rep. by Act 11 of 1947, s. 11. 7. The words "and Burma Co-operative Banks" have successively been subs. by Acts 9 of 1940, 11 of 1947, 24 of 1955 and 19 of 1957 to read as above. 8. Certain words omitted by Act 24 of 1978, s. 4 (w.e.f. 21-7-1978). 22 repayable on demand or on the expiry of fixed periods not exceeding ninety days, against the security of-- (a) stocks, funds and securities (other than immovable property) in which a trustee is authorized to invest trust money by any Act of Parliament 1*[of the United Kingdom] or by any law for the time being in force in 2*[India] 3***. (b) gold or silver or documents of title to the same; (c) such bills of exchange and promissory notes as are eligible for purchase or rediscount by the Bank 4*[or as are fully guaranteed as to the repayment of the principal and payment of interest by a State Government]; (d) promissory notes of any scheduled bank 5*[6*[or State] co-operative bank], supported by documents of title to goods 7*[such documents having been transferred], assigned, or pledged to any such bank as security for 8*[a loan or advance made] for bona fide commercial or trade transactions, or for the purpose of 9*[financing agricultural operations] or the marketing of crops: 10*[Provided that loans and advances made against the security of bills of exchange and promissory notes arising out of any transaction relating to the export of goods from India shall be repayable on demand or on the expiry of fixed periods not exceeding one hundred and eighty days;] ---------------------------------------------------------------------- 1. Ins. by the A. O. 1950. 2. Subs. by Act 32 of 1951, s. 2, for "the States". 3. The words "or Burma" ins. by the M. O. 1937, rep. by Act 11 of 1947, s. 11. 4. Ins. by Act 24 of 1955, s. 6 5. Subs. by the M. O. 1937, for "or a provincial co-operative bank". 6. Subs. by Act 11 of 1947, s. 11, for "Burma scheduled bank, provincial co-operative bank, or Burma". 7. Subs. by Act 32 of 1951, s. 7, for "which have been transferred". 8. Subs. by Act 24 of 1955, s. 6, for "a cash credit or overdraft granted". 9. Subs. by Act 51 of 1974, s. 6, for "financing seasonal agricultural operations". 10. Ins. by Act 35 of 1962, s. 3. 23 1*[(4A) the making to any State Financial Corporation 2***, of loans and advances repayable on the expiry of fixed periods not exceeding eighteen months from the date of such loan or advance, against securities of the Central Government or of any State Government, of any maturity, or against bonds and debentures issued by that Corporation and guaranteed by the State Government concerned and maturing within a period not exceeding eighteen months from the date of such loan or advance: 3*[Provided that the previous approval of the State Government shall be obtained for the borrowing by the State Financial Corporation and the amount of loans and advances granted to that Corporation under this clause shall not, at any time, exceed in the aggregate 4*[twice the paid-up share capital] thereof;]] 5*[(4AA) the making of annual contributions to the National Rural Credit (Long Term Operations) Fund and the National Rural Credit (Stabilisation) Fund established under sections 42 and 43, respectively, of the National Bank for Agriculture and Rural Development Act, 1981 (61 of 1981);] 6*[(4B) the making to the Industrial Finance Corporation of India 2*** of loans and advances,-- (a) repayable on demand or on the expiry of fixed periods not exceeding ninety days from the date of such loan or advance, against securities of the Central Government or of any State Government; or (b) repayable on the expiry of fixed periods not exceeding eighteen months from the date of such loan or advance, against securities of the Central Government of any maturity or against bonds and debentures issued by the said Corporation and guar- ---------------------------------------------------------------------- 1. Ins. by Act 14 of 1960, s. 2. 2. Certain words omitted by Act 24 of 1978, s. 4 (w.e.f. 21-6-1978). 3. Subs. by Act 51 of 1974, s. 6, for the former proviso. 4. Subs. by Act 81 of 1985, s. 2, for (w.e.f. 1-5-1986) 5. Subs. by Act 61 of 1981, s. 61 & Sch II (w.e.f. 12-7-1982) 6. Ins. by Act 54 of 1953, s.3. 24 anteed by the Central Government and maturing within a period not exceeding eighteen months from the date of such lon or advance: 1* * * * * 2*[(4BB) the making to any financial institution notified by the Central Government in this behalf, of loans and advances,-- (a) repayable on demand or on the expiry of fixed periods not exceeding ninety days from the date of such loan or advance, against the securities of the Central Government or of any State Government, or (b) repayable on the expiry of fixed periods not exceeding eighteen months from the date of such loan or advance against securities of the Central Government or of any State Government, of any maturity, or against bonds and debentures issued by that financial institution and guaranteed by the Central Government or any State Government, and maturing within a period not exceeding eighteen months from the date of such loan or advance: Provided that the amount of loans and advances granted to a financial institution under sub-clause (b) shall not at any time, exceed in the aggregate sixty per cent. of the paid-up share capital thereof;] 3*[(4BBB) the making to the Unit Trust of loans and advances.. (i) repayable on demand or on the expiry of a fixed period not exceeding ninety days from the date of such loan or advance 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 force in India, 3***; (ii) repayable on demand or within a period of eighteen months from the date of such loan or advance against the security of the bonds of the Unit Trust issued with the approval of and guaranteed by the Central Government; ---------------------------------------------------------------------- 1. Omitted by Act 66 of 1988, s. 5 (w.e.f. 30-12-1988). 2. Subs. by Act 14 of 1960, s. 2, for cl. (4BB). 3. Ins. by Act 52 of 1963, s. 44 and Sch. II (w.e.f. 1-2-1964) 4. The word "or" omitted by Act 17 of 1966, s. 11 (w.e.f. 10-6- 1966). 24A 1*[(iii) for the purpose of any scheme other than the first unit scheme under the Unit Trust of India Act, 1963 (52 of 1963) on such terms and conditions and against the security of such other property of the Unit Trust as may be specified in this behalf by the Bank;]] 2*[(4C) the making to a Warehousing Corporation established under the Agricultural Produce (Development and Warehousing) Corporation Act, 1956 of loans and advances,-- ---------------------------------------------------------------------- 1. Ins. by Act 17 of 1966, s. 11 (w.e.f. 10-6-1966). 2. Ins. by Act 28 of 1956, s. 55 (w.e.f. 1-8-1956). 24B (a) repayable on demand or on the expiry of fixed periods not exceeding ninety days from the date of such loan or advance, against securities of the Central Government or of any State Government; or (b) repayable on the expiry of fixed periods not exceeding eighteen months from the date of such loan or advance, against securities of the Central Government or of any State Government, of any maturity, or against bonds and debentures issued by the Corporation to within a period not exceeding eighteen months from the Central or a State Government, and maturing which the loan or advance is made and guaranteed by date of such loan or advance: Provided that the amount of loans and abvances granted under clause (b) shall not at any time exceed, in the aggregate, three crores of rupees in the case of the Central Warehousing Corporation and fifty lakhs of rupees in the case of a State Warehousing Corporation;] 1*[(4D) the making to the Deposit Insurance Corporation of loans and advances; and generally assisting the Corporation in such manner and on such terms as may be determined by the Central Board;] 2*[(4DD) the making to the National Housing Bank of loans and advances and generally assisting the National Housing Bank in such manner and on such terms as may be determined by the Central Board;] 3*[(4E) the making to the National Bank of loans and advances repayable on demand or on the expiry of fixed period not exceeding eighteen months from the date of making of the loan or advance, either-- (i) 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; or (ii) on such other terms and conditions as the Bank may specify;] 4*[(4F) contributing to the initial capital of the Unit Trust; 5*[(4G) the making of loans and advances to, and the purchasing of bonds and debentures of, the Development Bank 6*[or the Exim Bank] 7*[or the Reconstruction Bank] 8*[or the small industries Bank] 7* out of the National Industrial Credit (Long Term Operations) Fund established under section 46C; 2*[(4GG) the making of loans and advances to, and the purchasing of bonds and debentures of, the National Housing Bank out of the National Housing Credit (Long Term Operations) Fund established under section 46D;] ---------------------------------------------------------------------- 1. Ins. by Act 47 of 1961, s. 51 and Sch. II (w.e.f. 1-1-1962). 2. Ins. by Act 53 of 1987, s. 56 and Sch II (w.e.f. 9-7-1988) 3. Subs. by Act 61 of 1981, s. 61 and Sch II (w.e.f. 12-7-1982) 4. Ins. by Act 52 of 1963, s. 44 and Sch. II (w.e.f. 1-2-1964). 5. Ins. by Act 18 of 1964, s. 38 and Sch. II (w.e.f. 1-7-1964). 6. Ins. by Act 28 of 1981 s. 40 and Sch II (w.e.f. 1-1-1982) 7. Ins. by Act 62 of 1984, s. 71 and Sch III (w.e.f. 20-3-1985) 8. Ins. by Act 39 of 1989, s. 53 and second Sch (w.e.f. 7-3-1990). 24C (4H) the making to the Development Bank 1*[or the small Industries Bank] of loans and advances-- (a) repayable on demand or on the expiry of fixed periods not exceeding ninety days, from the date of such loan or advance 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; or (b) against the security of 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 such loan or advance;] 2*[(4-I) the making to scheduled banks, the Development Bank, 3*[the Exim Bank the Reconstruction Bank or the Small Industries Bank], the Industrial Finance Corporation and any other financial institution as may, on the recommendation of the Bank, be approved in this behalf by the Central Government of loans and advances repayable on demand or otherwise and against such security and on such other terms and conditions as may be approved in this behalf by the Central Board for the purpose of enabling such banks, or financial institution, as the case may be, to purchase foreign exchange from the Bank for the purpose of financing the import of capital goods or for such other purposes as may be approved by the Central Government;] 3*[(4J) the making to the Exim Bank of loans and advances-- (a) repayable on demand or on the expiry of a fixed period not exceeding ninety days, from the date of such loan or advance 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; or (b) against the security of 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 such loan or advance;] 1*[(4K) the making to the Reconstruction bank of loans and advances-- (a) repayable on demand or on the expiry of a fixed period not exceeding ninety days, from the date of such loan or advance 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; or (b) against the security of 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 such loan or advances;"] (5) the making to Central Government 5*[6*** 7*[and State Governments]] of advances repayable in each case not later than three months from the date of the making of the advance; 8*[(6) the issue of demand drafts, telegraphic transfers and other kinds of remittances made payable at its own offices or agencies, the purchase of telegraphic transfers, and the making, issue and circulation of book post bills;] 9* * * * * * ---------------------------------------------------------------------- 1. Ins. by Act 39 of 1989, s. 39 and second Sch. (w.e.f. 7-3 1990). 2. Ins. by Act 24 of 1978, s. 4 (w.e.f. 21-7-1978). 3. Ins. by Act 28 of 1981, s. 40 and Sch II (w.e.f. 1-1-1982) 4. Subs. by Act 39 of 1989, s. 39, for certain words (w.e.f. 1-1-1982) 5. Subs. by the M. O. 1937, for certain words. 6. The words "the Federal Railway Authority" omitted by the A. O. 1948. 7. Subs. by Act 11 of 1947, s. 11. for "P. Gs., the Govt. of Burma and the Burma Railway Board" (w.e.f. 1-4-1947). 8. Subs. by Act 32 of 1951, s. 7, for cl. (6). 9. Cl. (7) omitted by Act 2 of 1948, s. 2 and Sch. 24D (8) the purchase and sale of securities 1*[of the Central 2*[Government or a State Government]] of any maturity or of such securities of a local authority 3*** as may be specified in this behalf by the Central Government on the recommendation of the Central Board: Provided that securities fully guaranteed as to principal and interest by 4*[any such Government 5*[or authority]] shall be deemed for the purposes of this clause to be securities of such Government 5*[or authority]; 6* * * * * * 7*[(8A) the purchase and sale of shares in, or the capital of 8*[the 4*[National Bank] 10*[the Deposit Insurance Corporation], 11*[the Development Bank], the State Bank 12*[or any other bank 13*[or financial institution] notified by the Central Government in this behalf];] 14*(8AA) the promoting, establishing, supporting or aiding in the promotion, establishment and support of any financial institution, whether as its subsidiary or otherwise;] 15*[(8B) the keeping of deposits with the State Bank of such specific purposes as may be approved by the Central Government in this behalf;] (9) the custody of monies, securities and other articles of value and the collection of the proceeds, whether principal, interest or dividends, of any such securities; (10) the sale and realisation of all property, whether movable or immovable, which may in any way come into the possession of the Bank in satisfaction, or part satisfaction, of any of its claims; (11) the acting as agent for 16***, the Central Government 17*[or any State Government 18*** or any local autho- ---------------------------------------------------------------------- 1. Subs. by the M. O. 1937, for "of the G. of I., or of a L. G.". 2. Subs. by Act 11 of 1947, s. 11, for "Govt. a Provincial Govt, or the Govt, of Burma" (w.e.f. 1-4-1947). 3. The words "or such Part B States" omitted by Act 32 of 1951, s. 7. 4. Subs. by the M. O. 1937, for "the G. of I, a L. G., a local authority or State in India". 5. Subs. by Act 32 of 1951, s. 7, for "authority or State". 6. Proviso omitted by s. 7, ibid. 7. Ins. by Act 23 of 1955, s. 52 and Sch. III (w.e.f. 1-7-1955). 8. Ins. by Act 10 of 1963, s. 47 and Sch. II (w.e.f. 1-5-1963). 9. Subs. by Act 61 of 1981, s. 61 and Sch. II (w.e.f. 12-7-1982). 10. Ins. by Act 47 of 1961, s. 51 and Sch. II (w.e.f. 1-1-1962). 11. Ins. by Act 18 of 1964, s. 38 and Sch. II (w.e.f. 1-7-1964). 12. Subs. by Act 79 of 1956, s. 43 and Sch. II, for "or any of its subsidiary banks" (w.e.f. 22-10-1956). 13. Ins. by Act 19 of 1957, s. 2. 14. Ins. by Act 53 of 1987, s. 56 and Sch II (w.e.f. 9-7-1988). 15. Ins. by Act 38 of 1959, s. 64 and Sch. III (w.e.f. 10-9-1959). 16. The words "the Secretary of State" omitted by the A. O. 1948. 17. Subs. by the M. O. 1937, for "or any L. G. or local authority or State in India". 18. The words "or the Government of Burma" omitted by the Act 11 of 1947, s. 11 (w.e.f. 1-4-1947). 24E rity 1*** 2*[or the Industrial Finance Corporation of India 3*** 4*[or any other body corporate which is established or constituted by or under any other law] 5*[or the Government of any such country outside India or 6*[any such person or authority] as may be approved in this behalf by the Central Government] in the transaction of any of the following kinds of business, namely:-- (a) the purchase and sale of gold or silver 7*[or foreign exchange]; (b) the purchase, sale, transfer and custody of bills of exchange, securities or shares in any company; (c) the collection of the proceeds, whether principal, interest or dividends, of any securities or shares; (d) the remittance of such proceeds, at the risk of the principal, by bills of exchange payable either in India or elsewhere; (e) the management of public debt; 8*[(f) 9*** the issue and management of 10*** bonds and debentures;] 11*[(11A) the acting as agent for the Central Government,-- 12* * * * * (b) in administering any scheme for subsidising the rate of interest or other charges in relation to any loans or advances made, or other credit facilities provided, by banks or other financial institutions for the purpose ---------------------------------------------------------------------- 1. The words "or any Part B State" omitted by Act 32 of 1951, s. 7. 2. Ins. by Act 44 of 1949, s. 2. 3. Certain words omitted by Act 24 of 1978, s. 4 (w.e.f. 21-7-1978). 4. Ins. by Act 51 of 1974, s. 6. 5. Ins. by 32 of 1951, s. 7. 6. Subs. by Act 51 of 1974, s. 6, for "any such person". 7. Ins. by Act 23 of 1947, s. 3. 8. Ins. by Act 44 of 1949, s. 2. 9. Certain words omitted by Act 51 or 1974, s. 6. 10. the wordss "its" omitted by s. 6, ibid. 11. Subs. by Act 58 of 1968, s. 24, for cl. (11A) (w.e.f. 1-2-1969). 12. Sub-clause (a) omitted by Act 21 of 1978, s. 9 (w.e.f. 21-7- 1978). 24F of financing or facilitating any export from India and the making as such agent of payments on behalf of the Central Government;] 1*[(12) the purchase and sale of gold or silver coins and gold and silver bullion and foreign exchange and the opening of a gold account with the principal currency authority of any foreign country or the Bank for International Settlements or any international or regional bank or financial institution formed by such principal currency authority or authorities or by the Government of any foreign country;] 2*[(12A) the purchase and sale of securities issued by the Government of any country outside India or by any institution or body corporate established outside India and expressed to be payable in a foreign currency or any international or composite currency unit, being in the case of purchase by the Bank securities maturing within a period of ten years from the date of purchase: Provided that in the case of securities of an institution or body corporate, the repayment of principal and payment of interest in respect of such securities shall be guaranteed by the Government of the country concerned;] 2*[(12B) the making of loans and advances in foreign currencies to scheduled banks, the Development Bank, 2*[the Exim Bank] or 5*[the reconstruction Bank or the Small Industries Bank] the Industrial Finance Corporation, any State Financial Corporation and any other financial institution as may, on the recommendation of the Bank, be approved by the Central Government and on such terms and conditions as may be specified by the Central Board in this behalf, against promissory notes of such bank or financial institution, as the case may be: Provided that the borrowing bank or financial institution, as the case may be, furnishes a declaration in writing to the effect that-- (a) it has made loans and advances in foreign currencies for financing international trade or for the import of capital goods or for such other purposes ---------------------------------------------------------------------- 1. Subs. by Act 24 of 1978., s. 4 (w.e.f. 21-7-1978). 2. Ins. by s. 4, ibid. (w.e.f. 21-7-1978). 3. Ins. by Act 28 of 1981, s. 40 and Sch II (w.e.f. 1-1-1982). 4. Ins. by Act 62 of 1984, s. 71 and Sch. III (w.e.f. 20-3-1985). 5. Subs. by Act 39 of 1989, s. 53 and 2nd Sch (w.e.f. 7-3-90). 24G as may be approved by the Central Government; and (b) that the amount of loans or advances so made and outstanding at any time will not be less than the outstanding amount of the loans or advances obtained by it from the Bank;] 1*[(13) the opening of an account with a office outside India of any bank, including a bank incorporated in India or the making of an agency agreement with, and the acting as an agent or correspondent of, any bank incorporated outside India, or the principal currency authority of any country under the law for the time being in force in that country or any international or regional bank or financial institution formed by such principal currency authorities or foreign governments, and the investing of the funds of the Bank in the Bank in the shares and securities of any such international or regional bank or financial institution or of any other foreign institution as may be approved by the Central Board in this behalf;] 2*[(13A) participation in any arrangement for the clearing and settlement of any amounts due from, or to, any person or authority on account of the external trade of India with any other country or group of countries or of any remittances to, or from, that country or group of countries, including the advancing, or receiving, of any amount in any currency in connection therewith, and, for that purpose, becoming, with the approval of the Central Government, a member of any international or regional clearing union of central banks, monetary or other authorities, or being associated with any such clearing arrangements, or becoming a member of any body or association formed by central banks, monetary or other similar authorities, or being associated with the same in any manner;] (14) the borrowing of money for a period not exceeding one month for the purposes of the business of the Bank, and the giving of security for money so borrowed: ---------------------------------------------------------------------- 1. Subs. by Act 24 of 1978, s. 4, for sub-clause (13A) (w.e.f. 21-7-1978). 2. Ins. by Act 44 of 1973, s. 2 (retrospectively). 24H Provided that no money shall be borrowed under this clause from any person in India 1*** other than a scheduled bank 2*** or from any person outside India 1*** other than a bank which is the principal currency authority of any country under the law for the time being in force in that country: Provided further that the total amount of such borrowings from persons in India 3*** shall not at any time exceed the amount of the 4*[capital] of the Bank; 5*[* * * * * * (15) the making and issue of bank notes subject to the provisions of this Act 6***; 7*** 8*[(15A) the exercise of powers and functions and the performance of duties entrusted to the Bank under this Act or under any other law for the time being in force;] 9*[(15B) the providing of facilities for training in banking and for the promotion of research, where, in the opinion of the Bank, such provision may facilitate the exercise by the Bank of its powers and functions, or the discharge of its duties;] (16) generally, the doing of all such matters and things as may be incidental to or consequential upon the exercise of its powers or the discharge of its duties under this Act 10***.
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