BareLaws
SECTION

Section 17 — Business which the Bank may transact

From: The Reserve Bank of India Act, 1934

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 10[Central Government] , 11[12*** the 13[State] Government 14***] 15*** local authorities, banks and any other persons: 16[(1A) The accepting of money as deposits, repayable with interest, from banks or 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)(a) 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 or trade transaction bearing two or more good signat ures, one of which shall be that of a scheduled bank 19[or a State co -operative bank] 20[or any financial institution, which is predominantly engaged in the acceptance or discounting