Section Section 18
, shall be utilised only for the repayment by the borrowing bank O other person,
section 18, shall be utilised only for the repayment by the borrowing bank O other person, as the case may be, of the amounts due to be repaid by it or by him to the Bank, and shall be held by it o by him in trust for the Bank, until such time as the amounts are so repaid:] 19. Business which the Bank may not transact:-_Save as otherwise provided in sections 17, 18,2[42] and 45, the Bank may not (1) engage in trade OT 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) purchase the shares of any banking company O of any other company, O 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 s0 far as is necessary for its own business premises and residences for its officers and servants; make loans or advances; draw o accept bills payable otherwise than on demand; allow interest on deposits Or current accounts. CHAPTER III CENTRAL BANKING FUNCTIONS 20. Obligation of the Bank to transact Government business:- ~The Bank shall undertake to accept monies for account of 4[S*** the Central Government 6*** and to make payments up to the amount standing to the credit of [its account], and to carry out S[its exchange], remittance and other banking operations, including the management of the public debt %[of the Union]:
Ins. by Act 51 of 1974,$. 8 (w.e.f: 13-12-1974). 2. Ins by Act 38 of 1956,s. 2 (w.e.f: 6-10-1956). 3 . Subs. by Act 32 of 1951, $. 9, for clause (2) We.f. 1-1-1951). 4. Subs. by the M.O. 1937, for certain words_ 5. The words "the Secretary of State" omitted by the A.O. 1950 The words and letter and the Governments of Part A States" omitted by Act 37 of 1956,s. 104 (W.e.f 1-11-1956)_ 7 . Subs by $ 104,ibid, for "their accounts respectively" (w.e.f 1-11-1956). 8. Subs: by s. 104, ibid., for "their exchange" (W.e.f 1-11-1956) 9 Ins. by s. 104,ibid. (W.e.f: 1-11-1956).
23
20A. [Transaction of business for British Military Administration, Burma].-~Omitted to the repeal of the Ordinance by Act 11 of 1947 which was earlier temporarily inserted by Ordinance 19 of 1945. 21. Bank to have the right to transact Government business in India: 1) The ' [Central Government] 2*** shall entrust the Bank; on such conditions as may be agreed upon, with all 3 [its] money, remittance, exchange and banking transactions in India, and, in particular, shall deposit free of interest all 3[its] cash balances with the Bank: Provided that nothing in this sub-section shall prevent the '[Central Government] 4*** from carrying on money transactions at places where the Bank has no branches or agencies, and the I[Central Government] 2*** may hold at such places such balances as S[it] may require. (2) The '[Central Government] 6*** shall entrust the Bank; on such conditions as may be agreed upon, with the management of the public debt and with the issue of any new loans. (3) In the event of any failure to reach agreement on the conditions referred to in this section the I[Central Government] shall decide what the conditions shall be: 7[(4) Any agreement made under this section shall be laid, as soon aS may be after it is made, before Parliament: ] 8*
9[21A. Bank to transact Government business of States on agreement: The Bank may by agreement with the Government of any IO*** State Hs** undertake all its money, remittance, exchange and banking transactions in India, including in particular, the deposit, free of interest, of all its cash balances with the Bank; and (b) the management of the public debt of,and the issue of any new loans by, that State. 2 Any Agreement made under this section shall be laid, as soon as may be after it is made, before Parliament:] 12 [2IB. Effect of agreements made between the Bank and certain States before the Ist November, 1956.4(1) Any agreement made under
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