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 purposes of regulating credit in the interests of Indian trade, commerce, industry and agricultural, 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 the Reserve Bank of India (Amendment) Act, 1978, w.e.f. 21-7-1978.] | |
| [(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 co-operative society registered within the area in which the State co-operative 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.]
(2) [Omitted by the Reserve Bank of India (Amendment) Act, 1974.]