Section Section 8
to vote for him shall preside at meetings of the Central Board, and, in the even
section 8 to vote for him shall preside at meetings of the Central Board, and, in the event of an equality of votes, shall have a second or casting vote. 14. [General meetings]: Omitted by the Reserve Bank (Transfer to Public Ownership) Act, 1948 (62 of 1948),$. 7 and the Schedule (w.e;f: 1-1-1949). 15. [First constitution of the Central Board] Omitted by 7 and the Schedule, ibid (w.e f: 1-1-1949). 16. [First constitution of local board]. ~ Omitted by s.7 and the Schedule, ibid. (w.e f 1-1-1949). 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, 9*** the I[Central Government], 11 '[I2*** the 13[State] Government 14*** 15*** local authorities, banks and any other persons: 16[(IA) The accepting of money as deposits, repayable with interest, from banks o any other person under the Standing Deposit Facility Scheme, as approved by the Central Board, from time to time, for the purposes of liquidity management;] (2) the purchase, sale and rediscount of bills of exchange and promissory notes, 17[drawn on 18 '[and payable in India]] and arising out of bona fide commercial O trade transaction bearing two or more good signatures, one of which shall be that of a scheduled bank 19[or a State co-operative bank] 2 [or any financial institution, which is predominantly engaged in the acceptance or discounting
The words "otherwise than by the occurrence of a vacancy in the office of a Director elected by the Local Board" omitted by Act 62 of 1948, s_ 7 and the Schedule (w.e.f: 1-1-1949) 2 The word "qualified" omitted by s_ and the Schedule, ibid. (w.e.f. 1-1-1949)_ 3. Subs. by $_ and the Schedule, ibid. for "elected" (w.e.f 1-1-1949). 4. Subs. by $. and the Schedule, ibid. for certain words w.e.f. 1-1-1949) 5 The words ~or elected" omitted by s. and the Schedule, ibid. (W.e.f: 1-1-1949). 6_ The words, brackets and figure subject to the proviso contained in sub-section omitted by $. and the Schedule, ibid. (w.e.f: 1-1-1949)_ 7. Subs. by Act 18 of 1964, s. 38 and the Second Schedule; for "three Directors (w.e.f: 1-7-1964) 8. Subs. by Act 24 of 1955, s_ 5,for in his absence" (w.e.f: 8-5-1955). 9_ The words "the Secretary of State" omitted by the A.O. 1948. 10. Subs. by the M.O. 1937, for "G.G. in C. 11. Subs. by the M.O. 1937, for "L.G_ 12_ The words "the Federal Railway Authority" omitted by the A.O. 1948 13 . Subs. by the A.O. 1950, for "Provincial" 14. The words "the Government of Burma; the Burma Railway Board; omitted by Act 1 of 1947,$ 1l (W.e.f: 1-4-1947)_ 15_ The words and letter ` Part B States omitted by Act 32 of 1951,s. 7 (w.e.f: 1-11-1951). 16. Ins. by Act 13 of 2018 135 (w.e.f: 28-3-2018). 17. Subs. by the M.O. 1937, for "drawn 0n and payable in India" 18. Subs. by Act 11 of 1947, 11, for " India or Burma and payable in India o Burma (w.e.f: 1-4-1947)- 19. Ins. by Act 32 of 1951, s. 7 (w.e.f: 1-11-1951)- 20. Ins. by Act 51 of 1974, $. 6 (w.e.f: 13-12-1974).
12
of bills of exchange and promissory notes and which is approved by the Bank in this behalf] *** and ?[maturing; 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 (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, '[drawn [and payable in India]] and bearing two O more good signatures, one of which shall be that of a scheduled bank S[or a '[State] co-operative bank] [or any financial institution, which is predominantly engaged in the acceptance discounting of bills of exchange and promissory notes and which is approved by the Bank in this behalf] and drawn O issued for the purpose of S[financing agricultural operations] O the marketing of crops, and maturing within '[fifteen months] from the date of such purchase O rediscount; exclusive of days of grace; 10*
H[(bb) the purchase, sale and rediscount of bills of exchange and promissory notes drawn and payable in India and bearing two O more good signatures, one of which shall be that of a State cO- operative bank O State financial corporation ?[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 O rediscount, exclusive of days of grace, provided that the payment of the principal and interest of such bills of exchange O promissory notes is fully guaranteed by the State Government;] C the purchase, sale and rediscount of bills of exchange and promissory notes ?[drawn 12[and payable in India]] and bearing the signature of a scheduled bank; I*** and issued O drawn for the purpose of holding or trading in securities of 14 [the Central Government 15 [or 6[State] Government]] I6*** and maturing within ninety days from the date of such purchase O rediscount; exclusive of days of grace; (3) (a) the purchase from and sale to scheduled banks 17*** of IS[foreign exchange] 19***
The words *or a Burma scheduled bank' omitted by Act 11 of 1947, s. 11 (w.e.f: 1-4-1947), which were inserted by M.O_ 1937_ 2. Subs. by Act 35 of 1962, $. 3, for "maturing within ninety days from the date of such purchase or re-discount; exclusive of days of grace" (w.e.f: 15-9-1962). 3 . Subs. by M.O. 1937, for "drawn and payable in India"_ 4. Subs. by Act 1l of 1947,s. 11, for "either in India or in Burma and payable either in India Or in Burma (w.e.f 1-4-1947)_ 5 . Subs. by 11, ibid: for Burma scheduled bank; provincial cO-operative bank; or Burma co-operative bank" (w.e.f: 1-4-1947). Subs by the A.O. 1950, for Provincial"_ Ins: by Act 51 of 1974, S. 6 (w.e.f: 13-12-1974). 8. Subs. by s. 6, ibid,for "financing seasonal agricultural operations" (W.e.f: 13-12-1974). 9. Subs by Act 32 of 1951,s. 7, for "nine months" (w.e.f: 1-11-1951). 10. The Explanation omitted by Act 23 of 1965, (w.e.f: 1-3-1966). Earlier added by Act 54 of 1953,s. 3 (w.e.f: 30-12-1953)_ 11. Ins_ by Act 54 of 1953, s. 3 (w.e.f: 30-12-1953)- 12. Subs. by Act 1l of 1947,s. 11, for "either in India or Burma and payable either in India or in Burma' (w.e.f: 1-4-1947). 13. The words *or a Burma scheduled bank" omitted by s_ 11, ibid. (w.e.f: 1-4-1947)_ 14. Subs. by the M.O. 1937, for "the Government of India O a L.G: 15. Subs. by Act 1l of 1947 11, for *Or a Provincial Government" (W.e.f: 1-4-1947)- 16. The words *or such securities of Part B States as may be specified in this behalf by the Central Government on the recommendation of the Central Board" omitted by Act 32 of 1951,$. (w.e.f: 1-11-1951) 17. The words *and Burma scheduled banks omitted by Act 1 of 1947, 11 (w.e.f 1-4-1947) which was earlier inserted by M.O. 1937_ 18. Subs. by Act 62 of 1948,s. and the Schedule, for "sterling" (w.e.f: 1-1-1949). 19_ The words cin amounts of not less than the equivalent of one lakh of rupees" omitted by Act 24 of 1978, (w.e.f: 21-7-1978).
13
'[(b) the purchase sale and rediscount of bills of exchange (including treasury bills) drawn in O on any place in any country outside India which is a member of the International Monetary Fund and maturing; 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 scheduled bank or a State co-operative bank;] 2*
3[(3A) the making to any scheduled bank or State co-operative bank, or loans and advances, against promissory notes Or such bank, repayable o demand Or o 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 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_ drawn in India and no any place in any country outside India which is a member of the International Monetary Fund O in any other country notified in this behalf by the Bank in the Gazette of India, and 4[(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] S[(ii) it has granted a pre-shipment loan O advance to an exporter O 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:]] 6[(3B) the making to any scheduled bank or State co-operative bank or loans and advances repayable on demand o 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 O 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;] the making to *x* local authorities, scheduled banks 8 [ *xx 10 [State] co-operative banks 1![and State Financial Corporations 12***]] or loans and advances, repayable on demand O on the expiry of fixed periods not exceeding ninety days, against the security of
1. Subs: by Act 35 of 1962, s_ 3 , for sub-clause (b) (w.e.f. 15-9-1962)_ 2. Sub-clause (c) omitted by Act 62 of 1948, s_ and the Schedule W.e.f: 1-1-1949) 3 Ins: by Act 35 of 1962,s. 3 (w.e.f: 15-9-1962). 4. Subs. by Act 58 of 1968, s. 24, for sub-clause (b) (w.e.f: 1-2-1969). 5 . Subs. by s. 24, ibid_, for clause (ii) (W.e.f: 1-2-1969). 6. Ins: by Act 51 of 1974,s. 6 (w.e.f: 13-12-1974). The words and letter "Part B States" omitted by Act 32 of 1951,s. 7 (w.e.f: 1-1-1951). 8. Subs by the M.O. 1937, for and Provincial co-operative banks" 9_ The words Burma scheduled banks" omitted by Act 1 of 1947,s. 11 (W.e.f 1-4-1947)_ 10. Subs. by the A.O 1950, for Provincial"_ 11. Subs. by Act 19 of 1957,$. 2, for certain words (W.e.f: 8-6-1957). 12. The words and figures established under the State Financial Corporations Act; 1951' omitted by Act 24 of 1978 4 (w.e.f. 21-7-1978)-
14
stocks, funds and securities (other than immovable property) in which
trustee is authorised to invest trust money by any Act of Parliament ![of the United Kingdom] or by any law for time being in force in ?[India] 3x* b gold or silver or documents of title to the same; C such bills of exchange and promissory notes as are eligible for purchase O 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]; promissory notes of any scheduled bank S[G[or "[State]] co-operative bank], supported by documents of title to goods [such documents having been transferred], assigned, or pledged to any such bank as security for 9[a loan or advance made] for bona fide commercial or trade transactions, O for the purpose of I[financing agricultural operations] or the marketing of crops: [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 o demand o on the expiry of fixed periods not exceeding one hundred and eighty days;] 12[(4A) the making to any State Financial Corporation 13x** of loans and advances repayable o the expiry of fixed periods not exceeding eighteen months from the date of such loan O 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 O advance: 14 [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 15 '[twice the paid-up share capital] thereof;]] 16 [17 [(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);] IS[(4B) the making to the Industrial Finance Corporation of India '9*** 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 securities of the Central Government Or of any State Government; Or
Ins. by the AO. 1950 2. Subs: by Act 32 of 1951, 2 for "the States" (w.e.f: 1-11-1951) 3 The words *or Burma' omitted by Act 11 of 1947, s_ 11 (w.e.f: 1-4-1947) which was inserted by the M.O. 1937. Ins. by Act 24 of 1955,s. 6 (w.e.f: 8-5-1955). 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 (w.e.f: 1-4-1947) 7. Subs. by the A.O_ 1950, for Provincial" 8. Subs. by Act 32 of 1951, s. 7 , for " which have been transferred" (W.e.f. 1-11-1951)_ 9. Subs by Act 24 of 1955,s. 6, for *a cash credit or overdraft granted" (W.e.f: 8-5-1955). 10. Subs. by Act 51 of 1974, $. 6, for "financing seasonal agricultural operations (w.e.f. 13-12-1974). 11. Added by Act 35 of 1962, $. 3 (w.ef: 15-9-1962). 12. Ins. by Act 14 of 1960, 2 (w.e.f: 30-4-1960). 13. The words and figures established under the State Financial Corporations Act; 19517 omitted by Act 24 of 1978, s_ (w.e.f. 21-7-1978) 14. Subs. by Act 51 of 1974,s. 6, for the proviso (w.e.f: 13-12-1974). 15. Subs. by Act 81 of 1985,s. 2, for "ninety per cent: of the paid-up share capital" (W.e.f: 1-5-1986)_ 16. Subs. by Act 61 of 1981, s. 61 and the Second Schedule, for clause (4AA) (w.e.f: 12-7-1982)_ 17. Clause (4A_ renumbered and re-lettered as clause (4AA) thereof by Act 14 of 1960, 2 (w.ef: 30-4-1960). Earlier it was inserted by Act 54 of 1953,s_ 3 (w.e.f.30-12-1953)_ 18. Ins. by Act 54 of 1953,s. 3 (w.e.f: 30-12-1953). 19 The words and figures *established under the Industrial Finance Corporation Act; 1948" omitted by Act 24 of 1978, $. (w.e.f. 21-7-1978).
15
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 O against bonds and debentures issued by the Corporation and guaranteed by the Central Government and maturity within a period not exceeding eighteen months from the date of such loan or advance;
2[(4BB) the making to any financial institution notified by the Central Government in this behalf, of loans and advances, repayable on demand or on the expiry of fixed periods not exceeding ninety days from the date of such loan o 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 o advance, against securities of the Central Government O of any State Government;, of any maturity, or against bonds and debentures issued by that financial institution and guaranteed by the Central Government o any State Government, and maturing within a period not exceeding eighteen months from the date of such loan O 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 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; 4*** (ii) repayable on demand or within a period of eighteen months from the date of such loan o advance against the security of the bonds of the Unit Trust issued with the approval of and guaranteed by the Central Government;] S[(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;] 6[(4C) the making to Warehousing Corporation established under the Agricultural Produce (Development and Warehousing) Corporations Act; 1956 (28 of 1956) 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 securities of the Central Government O of any State Government; Or (b) repayable on the expiry of fixed periods not exceeding eighteen months from the date of such loan o 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 which the loan Or advance is made, and guaranteed by the Central O State Government, and maturing within period not exceeding eighteen months from the date of such loan O advance: Provided that the amount of loans and advances 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;]
The proviso omitted by Act 66 of 1988, s 5 (w.e.f: 30-12-1988) 2. Subs by Act 14 of 1960, $. 2, for clause (4BB) (w.e.f. 30-4-1960). Earlier inserted by Act 19 of 1957. S.2 (w.e.f: 8-6-1957). 3. Ins. by Act 52 of 1963, s_ 44 and the Second Schedule (w.e.f:. 1-2-1964). The word "or" omitted by Act 17 of 1966,s. 11 (W.e.f: 10-6-1966). 5 Ins. by s. 11, ibid. (w.e.f: 10-6-1966)_ 6. Ins. by Act 28 of 1956, 55 (w.ef: 1-8-1956).
16
'[(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;] H[(4DD) the making to the National Housing Bank of loans and advances arid generally assisting the National Housing Bank in such manner and on such terms as may be determined by the Central Board;] '[(4E) the making to the National Bank of loans and advances repayable o demand or on the expiry of fixed period not exceeding eighteen months from the date of making of the loan Or advance, either 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;] [(4G) the making of loans and advances to, and the purchasing of bonds and debentures of, 6*** [the Exim Bank] [or the Reconstruction Bank] [0r the Small Industries Bank I[or the National Bank for Financing Infrastructure and Development or other development financial institution]] out of the National Industrial Credit (Long Term Operations) Fund established under
Roop's Law Assist