Section 18:
Power of direct discount.
1***When, in the opinion of the 2[Bank] 3***, a special occasion
has arisen making it necessary or expedient that action should be taken 4[under this section] for the
purposes of regulating credit in the interests of Indian 5*** trade, commerce, industry and agricultural,
the Bank may, notwithstanding any limitation contained in 6*** section 17,--
7[(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]
8* * * * *
9[(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 the fixed periods, not exceeding ninety days, on such terms
and conditions as the Bank may consider to be sufficient.]
10* * * * *
11* * * * *
Notes:
1. The brackets and figures "(1)" omitted by Act 51 of 1974, s. 7 (w.e.f. 13-12-1974).
2. Subs. by Act 32 of 1951, s. 8, for "Central Board” (w.e.f. 1-11-1951).
3. Certain words omitted by Act 62 of 1948, s. 7 and the Schedule (w.e.f. 1-1-1949).
4. Subs. by Act 51 of 1974, s. 7, for "under this sub-section" (w.e.f. 13-12-1974).
5. The words "or Burman" omitted by Act 11 of 1947, s. 12 (w.e.f. 1-4-1947) which was inserted by the M.O. 1937.
6. The words, brackets, letters and figures "sub-clauses (a) and (b) of clause (2) or sub-clause (a) or (b) of clause (3) or clause
(4) of" omitted by Act 51 of 1974, s. 7 (w.e.f. 13-12-1974).
7. Subs. by s. 7, ibid., for clause (1) (w.e.f. 13-12-1974).
8. Clause (2) omitted by Act 24 of 1978, s. 5 (w.e.f. 21-7-1978).
9. Subs. by Act 51 of 1974, s. 7, for clause (3) (w.e.f. 13-12-1974).
10. The proviso omitted by Act 62 of 1948, s. 7 and the Schedule (w.e.f. 1-1-1949).
11. Sub-section (2) omitted by Act 51 of 1974, s. 7 (w.e.f. 13-12-1974).