18. Power of direct
discount.- When, in the opinion of the Bank, a special
occasion has arisen making it necessary or expedient that
action should be taken under this section for the purpose
of regulating credit in the interests of Indian trade, commerce,
industry and agriculture, the Bank may, notwithstanding any
limitation contained in section 17, –
(1) purchase, sell or discount any bill of exchange or promissory
note though such bill or promissory note is not eligible for
purchase or discount by the Bank under that section; or
(2) Omitted by Act 24 of 1978
(3) make loans or advances to –
(a) a State co-operative bank, or
(b) on the recommendation of a State co-operative bank, to
a cooperative society registered within the area in which
the State cooperative bank operates, or
(c) any other person, repayable on demand or on the expiry
of fixed periods, not exceeding ninety days, on such terms
and conditions as the Bank may consider to be sufficient.
Proviso omitted by Act 62 of 1948
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