Section Section 46D
;] (4H) the making to 6x** %[or the Small Industries Bank] of loans and advances
section 46D;] (4H) the making to 6x** %[or the Small Industries Bank] of loans and advances 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 O promissory notes, arising out of bona fide commercial or trade transactions bearing two O more good signatures and maturing within five years from the date of such loan o advance;] "[(4-D) the making to scheduled banks, 12*** 7[the Exim Bank] 13[the Reconstruction Bank O the Small Industries Bank] the Industrial Finance Corporation 10 '[the National Bank for Financing Infrastructure and Development O other development financial institution] 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;] 7[(4J) the making to the Exim Bank of loans and advances
Ins. by Act 47 of 1961 51 and the Second Schedule (w.e.f: 1-1-1962) 2. Ins. by Act 53 of 1987 s. 56 and the Second Schedule (w.e.f: 9-7-1988). 3 . Subs. by Act 61 of 1981,s. 61 and the Second Schedule, for clause (4E) (w.e.f: 12-7-1982). Ins. by Ac 52 of 1963, s_ 44 and the Second Schedule (w.ef: 1-2-1964). 5 Ins. by Act 18 of 1964, s. 38 and the Second Schedule (W.e.f: 1-7-1964). 6_ The words "the Development Bank or" omitted by Act 53 of 2003, s. 12 and the Schedule (w.e.f. 2-7-2004)_ 7. Ins. by Act 28 of 1981, s. 40 and the Second Schedule (w.e.f: 1-1-1982)_ 8 Ins. by Act 62 of 1984, s. 71 and the Third Schedule (W.e.f: 20-3-1985). 9 Ins. by Act 39 of 1989, 53 and the Second Schedule (w.e.f: 7-3-1990)_ 10_ Ins_ by Act 17 of 2021, 47 and the second Schedule (w.e.f: 19-4-2021). 11. Ins_ by Act 24 of 1978, (w.e.f: 21-7-1978)_ 12_ The words "the Development Bank" omitted by Act 53 of 2003,s. 12 and the Schedule (W.e.f: 2-7-2004). 13. Subs. by Act 39 of 1989,s. 53 and the Second Schedule, for *or the Reconstruction Bank" (w.e.f: 7-3-1990).
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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; O (b) against the security of bills of exchange Or promissory notes, arising out of bona fide commercial O trade transactions bearing two or more good signatures and maturing within five years from the date of such loan O advance;] '[(4K) the making to the Reconstruction Bank of loans and advances 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; O (b) against the security of bills of exchange Or promissory notes, arising out of bona fide commercial or trade transactions bearing two or more goods signatures and maturing within five years from the date of such loan or advance;] 2 [(4L) the making to the National Bank for Financing Infrastructure and Development or other development financial institution of loans and advances repayable on demand Or on the expiry of 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;] 5) the making to the 3[Central Government] 4[S*** '[and [State] Governments]] of advances repayable in each case not later than three months from the date of the making of the advance; [(6) the issue of demand drafts, telegraphic transfers and other kinds of remittances made payable at its own offices O agencies, the purchase of telegraphic transfers, and the making, issue and circulation of bank post bills;] 9[(64) dealing in derivatives, and, with the approval of the Central Board, in any other financial instrument. Explanation.-For the purposes of this clause, "derivative" means an instrument; to be settled at future date, whose value is derived from change in one or combination of more than one of the following underlying, namely: _ interest rate, (b) price of securities of the Central Government O a State Government O of such securities of a local authority as may be specified in this behalf by the Central Government; price of foreign securities, foreign exchange rate, e index of rates Or prices, credit rating Or credit index, price of gold or silver coins, O gold or silver bullion, or h any other variable of similar nature;] 10*
Ins. by Act 62 of 1984, s. 71 and the Third Schedule (W.e.f: 20-3-1985) 2 Ins. by Act 17 0f 2021, s. 47 and the Second Schedule (W.e.f: 19-4-2021). 3. Subs. by the M.O. 1937, for "G.G. in C." 4. Subs. by ibid_, for certain words_ 5. The words "the Federal Railway Authority" omitted by the A.O. 1948. 6. Subs: by Act 11 of 1947, 11, for "Provincial Governments, the Government of Burma and the Burma Railway Board" (w.e.f: 1-4-1947). 7. Subs. by the A.O. 1950, for * Provincial"_ 8. Subs by Act 32 of 1951,$_ 7,for clause (6) (w.e.f: 1-11-1951). 9 Ins. by Act 26 of 2006, s. 2 (W.e.f. 9-1-2007)_ 10_ Clause repealed by Act 2 of 1948,$. 2 and the Schedule (w.e.f. 5-1-1948).
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the purchase and sale of securities '[of the Central ?[Government O 3[State] Government]] of any maturity O of such securities of a local authority 4*** as may be specified in this behalf by the S[Central Government] on the recommendation of the Central Board: Provided that securities fully guaranteed as to principal and interest by [any such Government "[or authority]] shall be deemed for the purposes of this clause to be securities of such Government ?[or authority]; 8*
9[(84) the purchase and sale of shares in, O the capital of I[the !![National Bank],] 12[the Deposit Insurance Corporation], 13*** the State Bank I4[Or any other bank IS[or financial institution] notified by the Central Government in this behalf];] 16[(8AA) the promoting, establishing, supporting O aiding in the promotion, establishment and support of any financial institution, whether as its subsidiary Or otherwise;] 17[(8B) the keeping of deposits with the State Bank for such specific purposes as may be approved by the Central Government in this behalf;] the custody of monies, securities and other articles of value, and the collection of the proceeds, whether principal, interest O dividends, of any such securities; (10) the sale realisation of all property, whether movable or immovable, which may in any way come into the possession of the Bank in satisfaction, O part satisfaction, of any of its claims; (11) the acting as agent for I8*** the S[Central Government] 19[or any '[State] Government 20*** Or any local authority 21*** 22[or the Industrial Finance Corporation of India 23***] 24[0r any other body corporate which is established or constituted by O under any other law] 25[0r the Government of any such country outside India or 26[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: the purchase and sale of gold Or silver 27[or foreign exchange]; (b) the purchase, sale, transfer and custody of bills of exchange, securities o shares in any company;
1. Subs. by the M.O. 1937, for *of the G. of [or ofa L.G. 2. Subs. by Act 11 of 1947,s. 11, for "Government; Provincial Government or the Government of Burma' (w.e.f: 1-4-197). 3 . Subs. by the A.O. 1950, for Provincial" The words and letter "or such Part B States" omitted by Act 32 of 1951,s. 7 (W.e.f: 1-11-1951) 5. Subs by the M.O. 1937, for "G.G. in C. 6. Subs_, ibid_ for ""the G. ofL,,a L.G, a local authority or State in India" 7. Subs. by Act 32 of 1951_ s. 7, for authority O State" (W.e.f: 1-11-1951). 8 The second proviso omitted by $_ 7, ibid. (w.e.f: 1-11-1951)- 9_ Ins. by Act 23 of 1955, 52 and the Third Schedule (w.e.f: 1-7-1955). 10_ Ins_ by Act 10 of 1963 47 and the Second Schedule (w.ef. 1-5-1963). 1. Subs. by Act 61 of 1981, 61 and the Second Schedule, for Agricultural Refinance and Development Corporation" (w.e.f: 12-7-1982). 12. Ins. by Act 47 of 1961,$. 51 and the Second Schedule (W.e.f: 1-1-1962). 13_ The words "the Development Bank' omitted by Act 53 of 2003,s. 12 and the Schedule (W.e.f. 2-7-2004). 14. Subs. by Act 79 of 1956,s 43 and the Second Schedule, for "or any of its subsidiary banks" (W.e.f. 22-10-1956). 15. Ins. by Act 19 of 1957 2 (w.e.f. 8-6-1957). 16. Ins_ by Act 53 of 1987 s. 56 and the Second Schedule (w.e.f: 9-7-1988)_ 17 . Ins. by Act 38 of 1959, s. 64 and the Third Schedule (w.ef: 10-9-1959). 18 The words "the Secretary of State omitted by the A.O. 1948. 19. Subs , ibid , for certain words_ 20. The words or the Government of Burma omitted by Act I1 of 1947, $. 1l (W.e.f: 1-4-1947). 21. The words and letter "or any Part B State" omitted by Act 32 of 1951,s. 7 (W.e.f: 1-11-1951). 22. Ins. by Act 44 of 1949, s. 2_ 23_ The words "established under the Industrial Finance Corporation Act; 1948 (15 of 1948)" omitted by Act 24 of 1978, 4 (w.e.f: 21-7-1978) 24 Ins_ by Act 51 of 1974, s. 6 (w.e.f:. 13-12-1974)_ 25. Ins. by Act 32 of 1951, (w.e.f: 1-11-1951)_ 26. Subs. by Act 51 of 1974,s. 6, for any such person" (W.e.f: 13-12-1974)_ 27_ Added by Act 23 of 1947, s. 3 (w.e.f: 18-4-1947)_
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the collection of the proceeds, whether principal, interest or dividends, of any securities O shares; 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; '[(f) 2*** the issue and management of 3*** bonds and debentures;] 4[(IIA) the acting as agent for the Central Government; S[(a) in guaranteeing the due performance by any small-scale industrial concern, approved by the Central Government, of its obligations to any bank o other financial institution in respect of loans and advances made, Or other credit facilities provided, to it by such bank O other financial institution and the making as such agent of payments in connection with such guarantee, and] (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 of financing o facilitating any export from India and the making a5 such agent of payments on behalf of the Central Government;] 6[(12) the purchase and sale of gold or silver coins and gold and silver bullion and foreign exchange and the opening of 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 o by the Government of any foreign country;] "[(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;] S[(Z2AA) lending or borrowing of securities of the Central Government O a State Government Or of such securities of a local authority as may be specified in this behalf by the Central Government o foreign securities; I2AB) dealing in repo O reverse repo: Provided that lending or borrowing of funds by way of repo O reverse repo shall not be subject to any limitation contained in this section. Explanation.--~For the purposes of this clause; "repo' means an instrument for borrowing funds by selling securities of the Central Government or a State Government or of such securities of a local authority as may be specified in this behalf by the Central Government O foreign securities, with an agreement to repurchase the said securities on mutually agreed future date at an agreed price which includes interest for the funds borrowed;
Ins. by Act 44 of 1949, 2. The words *in respect of the aforesaid Corporation omitted by Act 51 of 1974,$. 6 (w.e.f: 13-12-1974). 3 The word ~its" omitted by s. 6, ibid. (w.e.f: 13-12-1974). Subs. by Act 58 of 1968, 24_ for clause (HA) (w.e.f: 1-2-1969). Earlier it was inserted by Act 14 of 1960, (w.e.f. 30-4-1960). 5. Restored by Act 81 of 1985, s. 12 (W.e.f: 1-5-1986). Earlier sub-clause (a) omitted by Act 21 of 1978, s. 9 (date to be notified)_ 6. Subs. by Act 24 of 1978, s. 4, for clause ( 12) (W.e.f: 21-7-1978) 7. Subs. by s. 4, ibid, for clause (12A) (w.e.f: 21-7-1978). 8 Ins. by Act 26 of 2006, s. 2 (W.e.f: 9-1-2007).
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b) "reverse repo' means an instrument for lending funds by purchasing securities of the Central Government o a State Government O of such securities of a local authority aS may be specified in this behalf by the Central Government O foreign securities, with an agreement to resell the said securities on mutually agreed future date at an agreed price which includes interest for the funds lent;] '[(12B) the making of loans and advances in foreign currencies to scheduled banks, 2*** [, the Exim Bank], 4[or S[the Reconstruction Bank or the Small Industries Bank]] the Industrial Finance Corporation 6[the National Bank for Financing Infrastructure and Development o other development financial institution,] 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 declaration in writing to the effect that 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 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 utstanding amount of the loans or advances obtained by it from the Bank;] "[(13) the opening of an account with an office outside India of any bank, including 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 O 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 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;] S[(134) participation in any arrangement for the clearing and settlement of any amounts due from; or to, any person or authority o account of the external trade of India with any other country Or group of countries O of any remittances to, or from; that country O group of countries, including the advancing, O receiving, of any amount in any currency in connection therewith, and, for that purpose, becoming, with the approval of the Central Government; 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 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 period not exceeding one month for the purposes of the business of the Bank, and the giving of security for money so borrowed: Provided that no money shall be borrowed under this clause from any person in India 9*** other than a scheduled bank IO*** Or from any person outside India H*** 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:
1. Ins. by Act 24 of 1978, $_ 4 (w.e.f. 21-7-1978). 2. The words "the Development Bank" omitted by Act 53 of 2003,$ 12 and the Schedule (W.e.f: 2-7-2004)- Ins. by Act 28 of 1981, s. 40 and the Second Schedule (w.e.f: 1-1-1982). 4. Ins. by Act 62 of 1984,s. 71 and the Third Schedule (W.e.f: 20-3-1985). 5. Subs. by Act 39 of 1989, s. 53 and the Second Schedule; for "the Reconstruction Bank (w.e.f: 7-3-1990)- 6. Ins. by Act 17 of 2021, s_ 47 and the Second Schedule (w.e.f: 19-4-2021). 7. Subs. by Act 24 of 1978,s_ 4,for clause (13) We.f. 21-7-1978) which was inserted by the M.O. 1937. 8 Ins. by Act 44 of 1973, s_ 2 (wr.e.f: 15-9-1973)_ 9 The words *or Burma' omitted by Act 11 of 1947,s. 11 (w.e.f: 1-4-1947) which were earlier inserted by the M.O. 1937. 9_ The words "or Burma scheduled bank' omitted by 11, ibid. (w.e.f. 1-4-1947) which were earlier inserted by the M.O 1937_ 10_ The words *and Burma omitted by s. 11, ibid. (W.e.f. 1-4-1947).
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Provided further that the total amount of such borrowings from persons in India '*** shall not at any time exceed the amount of the ?[capital] of the Bank; 3*
(15) the making and issue of bank notes subject to the provisions of this Act 4***= S*** 6[(1SA) the exercise of powers and functions and the performance of duties entrusted to the Bank under this Act o under any other law for the time being in force;] "[ISB) 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 O consequential upon the exercise of its powers Or the discharge of its duties under this Act 8***_ 18. Power of direct discount: 9*** When, in the opinion of the I[Bank] I*** special occasion has arisen making it necessary or expedient that action should be taken 1[under this section] for the purposes of regulating credit in the interests of Indian 1*** trade, commerce, industry and agricultural, the Bank may, notwithstanding any limitation contained in 14***
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