Reserve Bank of India Act, 1934

Section - 18 - Power of direct discount

Power of direct discount.

18. [***] 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-