 :!,:"  ,  1,,) , ' "ii'_lioi it7i '1'hbi l\i8bbve~ baltk,;or 'inola (amlen~f'_l9'18 ~ 4 - j - ,j' ,~  : -~"i"o :, 'dttt" ' ',' "j'( ~ ""~"-_"  '1 ~ ) • dj·~j  ~ jl' ~ •• 4  pffhet'"to, amewd ~ the  reee;ve;,""l-r f4k1imiaflt, i_a! , " \:;- _,' lu't _' ,) ,f • - , \, "'1\' ~t·~··:!j  ·} 'it "',n:  oft ~h~, be it enacted by p~~~ijllbe,t"'1y~fye\of"the(bepublic short title and commence-iddlt (j of india as follows:-,;", "', , - j j t, l: i·,,: t t   l i ~ ~ i i j ~ ~! ~ , " "  1 (1) ~  ~t mayi be, c:aijm jth:lle~e bank of ·iddm'~(a,pnwtd,t) act 1978 :1 l ,~" ,:_' d i:d \,_ j t{ ::1~ s (2) it shall come into force on such date as the centralgdt cwnt rna" by no~cation,in the ofbci, 0 °al g~zette, appo~tt ,~d,di1ferent dates ma~':be lip~ted "tdf' dift~ pi'ovts!dils' of t!iti' act '  ',,:& ~ l'~1 i~ j '"j", i ~','\ 1, j i~" i i 2 of 1as4 %0 ,'m; ~~  auall fit '1adila- ~;:ttri (hei-eimfter lfemfed to u therpltlai_,aot~~:_4h8-::w"j~agrlhl""<~ \cotp;htion", 10 vnv:;tbey,cmuiujr "jwo~!a~11~1bituiq and· deyelbpment ; coiipontibnf':lihall be _~o'l' cbane of nomenclature of alrlcultural refinance corpora· tioo a ini~ ,2' oftbe ~ipal! act-:-(i),;for clause (c), the''following clauses sha'll"'be bubbtituteci, namel,:~ , amendment of ieetion 2 - - j ': ):, i: j i ' ' '," ,,' ~ !: :  ,,' 15 'j~~::~~~  !: ~~"",~ ;~fforp;-c:~~jive the metlli~i~ye1y  ~gdg(1o to tbem in' the: f~ ~ge regulation act, 1973; , 46 of 1973 ~~in4~:,~iw"               ~ ;,cpr,ppr~cud~~~ t,m                         , d/i,;iht: )ndus:::   " ~~f~~m~¥?a ~~cu~:~b1tshed un~r the ~dus ~orporatton zm:t 1",;,;                                               _  , ___ ,  16 011948 ao (ii) afw\fbuse \1), the following' clause shall be insertecl namely:-- (fi) "state financial corporation" means any state financial corporation established under the state financial corporations act, 1951;' , in section 17 of the principal act,-(0 in clause (3), in sub-clause (4), the words "in amounts o~ not less than the equivalent of one lakh of rupees" shall be omitted; (u) in clauses (4) and (4a), the words and figun!s "established under the state fina~ial corporations act, 1951," shall be omitted; 10 (iii) in clause (48) j the words and figures "established under the industrial finance corporation act, 1948" shall be omitted; (iv) after clause (4h), the following clau'se shall be inserted, namely:-"(4-1) the making to scheduled banks, the development bank, is the industrial finance corporation and any other financial institution as may, on the recommendation of the bank, be approved _,;!!!~i~ tj!t  ~lf by the central government of loans and advances ¥', ,: ;~~ p,ll,~~ or, pth~r:v~ 4'pd~t fucb aem!i~'and ,  011 ,such other terms and conditions as may be approved in this 20 behalf by the central board for the purpose of enabling such banks, or financial institution, as the case may be, to purchase ~ ~l-e trasn tbe 'bank fer ~ the purpose qt', ftll8ncing the import of capital goods or for such other purposes as may , " , ,be ,approved' ", twe ' centital 'goven\jnlent;~'; ", ! ")' 1,:  : 2s -'·f if  ,1j ",-(v) in clause (11), the words and figures "established under the f ',lndtlstl!ia1,financ:e corpcirauon ·act; 1048" sball be omitted: j; i ! r: - -  )1 (vi) for clause (12), the following clause shall be 8ub~iituted, bllldelj'l~ 11~ ;: ! ~ i· ~ ''   _,' • :l j' ,;j:(i2}' thepur~ 8d:~ ~~;p~ gpj4'or silver ~~ andgold'ao and silver bullion and foreign exchange and the opening of a gold :a~w1tw;th ,tqe, principal,cmnltjl~ authority ,ef:aa, foreign ; ' "," fl "p i ii i1' je~~~~iul~ »mmipf lnternat~ se~~ql6ntl'or any idiml  ', ,p, tjolu¥ or,rejioqal bank or fti:umda1;jnatituuon,iormed by,"'' principal currency authority or ,a1fthgrities or by the geva- ~s :rnent of any foreign country;"; :' ,i i,;) (vii) :foor clause (12a), the fcll10wing clause shall be substituted, baritely:-" '" ( "(12a) the purchase anct'~ale b:f1ecuritieis issued by tb~' bdtr-ii'" i "'c/, ,~~ent of any i;!ountjry :«m~~de lruji¥l or, by any in,titution or 4d ,,-body corporate established outside lndia and expressed to be ,payable in a foreign curtenty or any international or composite cur-'1r/' " mlc1,unit, beingb1i 'the cuse of purehde-",'lthe &uk securities 1fiitiiiiftg within n petit,dm teil yeanitrrtnn tlae date'di ptttchase: ; - ~ l ;r; '\ ,~~',: , , ', , pr~vided that in the case of sec~t1es ,~f an ~i4itutioi1 or 45 1::1:, "hmy e~t1tf!;thete~ytflent ofprfrlcip~ a~~p~yn\ent~ inte-,! jrm iittesiwct 6f such '~t¢tiefts~at'i b~ guar~~teed ,by ~~ gov  ernment of the country c6n(!etned:"; , " " fl; ",~  l1(vi;~i~ ~~fl,~~au8e(l2,t),,~,1 so ~nded; ,the following ,clause : ,~b~,ms~~dnamely,:,-:-:,' ,'~ ," ',ii! ' i  " ;  , , , ": i oil ;,; ':",(12b) the aaak:ing of loans and advlllceis'ini'm'elgrl~­des to scheduled banks, rthe developilllmt, bank; the '1~ 5  " " ,}i'inance, c~~r'ti~1 any~tate fin~~ c,or~~~tiqjl8dd~y ,t!" ;;)'\ othel; ~~11 institution as,may, 00 __ , rec?~~~«?~ oft,ijje bank, be approved hr, ~ centf8l gov~~~~ ~:\~uch terms and conditions as may be specified by the central board j)ll1, ,)wqu8!belu¥f, ~~ not;es of such m!nka or'1ir1an-10 ,ri i )!' i ~ ir;wtitlltiol)i u the icase may ·be:  ,i i r"  ,'i, l, i,'" '" ,',  i " ,11, provided" that' the borrt)wing niik otfinaftcia1 ibstttufloh, - the case may be furnishes a decl~ration fft'wtiting' to th~ 'eftee't that-is (a) it has made loans and advances in foreign currencies for financing international trade or for the import of capital goods or for such other purposes as may be approved "y the central government; and 20 (b) that the amount of loans or advances so made and outstanding at any time will not be less than the outstanding amount of the loans or advances obtained by it from the bank;"; 30 35 (i,x) for clause (13), the following clause sliall be substituted, namely:-"(13) the opening of an accotmlt with an omce outside india of any bank, including a bank incorporated in india or the making of an agency agreement with, and the acting as an agent or correspondent of, any bank incorporated outside india, or the principal currency authority of any country under the law for the time being in force in that country or any international or regional bank or financial institution formed by such principal curt'edcy authorities or foreign governments, and the investing of the funds of the bank in the shares and securities of any such international or regional bank or financial instituf+ion or of any other foreign institution as may be approved by the central board in this behalf;", 5 in section 18 of the principal act, clause (2) shall be omitted amendment ot 8ection 18 6 in section 33 of the principal act, in sub-section (6), in clause (i)-amendment ot aection 33 (1) in sub-clause (a) ,-(a) after the words "international finance corporation", the words "or asian development bank" shall be inserted; (b) for the words "any commercialbank notified by the central government", the words "any banking or financial institution notified by the central government" shall be substituted; and 45 (e) for the words "period of ftve years", the words "period of ten years" shall be substituted; (2) in sub-clause (c), for the words "within five years", the words "within ten years" shall be substituted " • jin~"460fhf tj\e'ptmetp~ a'ctl~til'lhb;'s4!cttbno'(z), ~ ~, (6), the words and figures "established under·the' ittdttstl'tlll·finance corpora-amendment ot section ac ~rll\ct~'lm1w' t8il,h''-tahlilhed,1idciefi tbej l:8tiite=>l'tndeitrl" corporations ~ 1p,n" ,abalhi'h, ll-idiv i dy , '8i1d sieclltm(:~of the-,~6pala:ctt;' in s~qn (1), 'for:,~he words s 'il!ict~~"'1ncb~tax'-a$!f~' 1~~; 'the 'words andr't{(nres ilth,e 1~~'l\ct,··'f981-~ 't,e 'substituted amendmentot aec:tion 48  ' in'  tieft is' tid ithe"riilclli,:a'ft?fn sub-lecutwl" '(i) ~ iftir 'lhe words "published weekly in the oe'ke'fteiof 11ltiil"j the w~'~lihim in the' , g~,461actia·,at ,  iiltuvala·aad -ill 6ucb  rfmm as it may 10 amendment ot section 38 ~&l' 1hall'>be,fjw8~' duringthe'1~st fe~ ye~s inata's foreign ex'dh'~~ge ~~~~~~~s have in creased sizeably there are alie new opportunities for investment of reserves av~ilable now " it js, theref()re, necessa~ that the ~serve bank should have adequate authority to invest and utilise these reserves to the best advantage  2 accordingly, it i proposed to amend the reserve bank of lnliia tact, 1934,1or eq'lpowering tbe reserve bank to opeg gold 'accouj1ts abroad, invest in foreign securities guaranteed by a foreign government, open ~~ witja waign, b~apc;bee of· indi~ b,nka ~ ipve,t in, ijle shares and securities of an international or regj,opftl beqks~jtnapcial ,institutions formed by foreign governments or principal currency autholities   ~}t jaalao ~~ w'i~~pd(tpe aft}qd~mpower t~rese~e aank to give loan's in foreign_ c~em;~eslto, ~f,!~u1~·1~ ~1 f,f:'~ 'p'ec~r fied financial institutions to enable them to purchase foreign exchange from the r3serve bank' for financing import of capital goodi and other ;~~~lli~ ~~s;~~ c~~;~~a~~;~ia~~~fo:!~'~~ ~::i:: cw¥ehby by way of reftilance tn respect of foreign currency ~oans $iven by them for financing international trade, import of capital goods and other approyed purposes ,  j opportunity'is' 1jeirig taken to make certain formal ameridments to the act -,'  j' 'c' ' , l 5 the bill 'seeks to gi'te effect to the above objects - new di:lhi; t_ 'hh 'pebrumy; lw78 h m patel j \ \1 \' , ' '11 ,(2 of 1934) - - - - - definitions z in this act, unless there is anything repugnant in the subject or c~dte¥t,-- - - - - , , j j ~ (c) "foreign exchange" has the same meaning 8s ift the foreign ,exchange regulation act; 1947; , ' " , ' " 7 of 1947 ~ j' - - - - - business which the bank may transact 17 the bank shall be authorised to carry on and transact the several kinds of business hereinafter specified, ,namely: ~ ,," ;" "     ,  (3) (a) the purchase kern and sale to scheduled banks ~f foreign ; ~xchange in amounts of not less than' the equiv$ient of one latch of rupees; i' 1 - - - - , '' (4) the making to local authorities,' scheduled  banks, sate c0-operative banks and state financial corporations establishedjunder the state financial corporations act, 1951, of loans and advances 63 of 1951 repayable on demand or on the explry of fixed' periods, not, e!xceed~ ing ninety days, against the security of-; ! ! - ~\ 1 ~ (a) stocks, funds and securities (other than immovable property) in which a trustee is authorized to invest ;tniit'\momy by any act of parliament of ,the united kingdom or by any law for the time being in force in india; (b) gold or silver or documents of title to the same; (c) such bills of exchange and promissory notes as are eligible for purchase or rediscount by the bank or 8s are fully guaranteed as to the repayment of the principal and payment of interest by a state government; (d)' promissory notes of any scheduled bank or state cooperative bank, supported by documents of title to goods such documents having been transferred, assigned, or pledged to any luch bank as security for a loan or advance made for bona fide commercial or trade transactions, or for the purpose of ftnancing agricultural operations or the marketing of crops: (i; - pro~ided  that l~ and advances made against the seca1ntg of bills of exch~ge and promissory notes arising out of any transaction ~elating to the export of goods from india shall be repayable on' d~and or on the expiry of ftxed periods not exceeding one hundred and eighty days; 63 of 1951 j,4a) the -cnajdnl ,to any state finanoial corporation established under the state financial corporations act, 1951, of loans and advances repayable on the expiry ot; fixed periods not exceeding eighteen l" ~~ ~m the ~ij~ of slwp- ~ ~r advance, against securities oj! the central government or of any sta~ government, of any maturity, or against bonds and dellentures issued by that corporatton and , auaranteect, by' tbe state;government concemeci and maturing within - ~0ii: not lex~g eighteen months from the date of such i ; ,loan qf aclv8d£~' ptdvidm that the previous approval' of the state goveinment shall be obtained for tae ,borrowing by the state financial corporation and ~e amount of loans and' advances granted to that corporatiqn,uiider  t4ia clause shall not, at any time, exceed in the qgregate nirutty per' cent elf the pa:id-up share capital thereof; 15 of 1948 '" '" '" '" - (4b) the ~n& to the industrial finance corporati6jl of india established under the industrial finance corporation act; 1 1948 of loans and advances,- ii (8,), ,r~a;yaple ~!n demand or ~ the expiry of fixed periods not ~c~~ ninety day~ iirom the ~~ of such loanof' advance, ~t securities of the cen1;rjll ~ernment or of any state government; or ' ,t , ': (b) repayable on the expiry of fixed periods not exceeding eighteen months from the date of such loan or advance, against securities of the central government of any maturity ot: against bonds and 'debenturu issued by the said corporation and guaranteed by the central government and maturing within a period not exceeding eighteen months ftom the date of such loan or advance: ,  provided that the amount of loans and advances granted under sub-clause (b) shall not at any' tijl1e exeeed three crore~ of rupees in the aggregate;   , - '  - '" (11) the acting as agent for, the central govel'jlipent or any state government or any local authority or the industrial finance , corporation'  of india established under the industrial finance cor-is of 1848 poration' act, 1948 or any other body corporate wnich is established or constituted by or under any ather law or the government of any such countlry outsi~ india (it any such person or authority as may i , be approved in thisbebalf by the jcentral government in the transaettor of ahy of 'the following ldnds of busilte!ss, namely:-(a> the purch~se ~nd sal~'of gold or silver or foreign exchange; (b) the purchase, sale, transfer and cpstody of bill,9 of exchange, securities or shares in any oompany; ~t!) the collection of the proceeds, whether principal, interest or divil, offl6wo s8curtties cjri'lh8rer,i j ; : ~ j j  (dil~~ iww ~'}~~of ;~~hlpr~, ~t~ ~ pi:~,p'in­cip'~, dy,dll1~~·0re~c!f~ pay~~;~~it~w ~ ~9i1} p!-:ellwy{~ei (e) the management of public clem; \ (f) the·issue and manapmeat of bech"aa(i'debentures; " /, i - t, ~ 'i   - - - " i (12) the purchase and sale of gold' dr silver''co~ and· ioldand silver bullion' aha foreigtt!~libnge:' " :, !' ; "fl', l(t ;',1' •• " ~: ~ : 'r ~,::il~!;':1 ~:'":': ,",i' - - ' -  (12a) the pulchaae  and ;sale,4f secllrities-,ijluect--by:-thelgwernment of any, cowwly outside lddla'ancli~jtol baoprlf3!lldte'jin a foreign cul'li'ency, being in the case of purchase by  balik,ifl8turities,~~~~~:~i~ ~,p~f~~~?,f ~~,;re,~ ij:r¥1 i~ ~~:%jprchase; (13) the opeuids· of an,accij)uj1t ,with _ the maklnglof:fll1nia&8dcy apeen:ml't w1thpljld:~be acting as agent or -c01welpol1_tl"', a bank, ~a~_iil any· cowitry'outaideib1&a~oi"4b4l' priildpadljiunrehcy authority of :any counti'j uncier·theiawt()tl tha,time-lbeitllgtja:;force in that lc,ountry or any intematiol18l bank fotmed by such principal currencr authorities, and, the inves~g ~f the funds of thp, bank in thej~ aiw' secunt;es :ofany !uch ~ 1iltei'niltio~: bank~ ~ , ,,!~, ,-,',' \ f , f - - ! - , , , : ~! :  j"  -''f i ! 'f ") ' ': t i~·:l - - - - ·f power ot direct d18count '18 when,' in' the opinion of the bank, a ~ ~n' has arisen makitfjl ft·h~~ary"bre)cpedierlt tbtae',?n itiotil~,~j~· tulder this secti\sti 'for tlie:'pdtposedf"wgttlatfug credit in' the1 irl~er~sts  ~t indian tirade, commerce, industry and agriculture, the bank·tnay,'n6twtthatandinlipy,jiml~ti«;a;lcont~~ til ~tion 17,--, ;, ' ' - - - - (2) purchase or sell foreign exchanee in amounts oil not less than  the equl~i bf 'aile lakh' 01' ru~i deli"":" ( i j 1 ,1' '·1 l r: cit; ih i l' ' - ~ i 'j i ~ , ( i ~ 1 1 - - - - - , 33 (1)· - - - - be (6),ci~p? ~~ ,pum~ !?-~t,~l;ush' t~,~~io?! thft foj'~i~j:!l:8c~fti~~\y~ch: ~a! hel as part of me asse s s a r oe-, ;:( assetsot the lliue department (i) eecurities of the following kinds paya\)le in the cuu-ency of any foreign coun~ whi~h is a member of the lntemati9pa1,~netary fu!ldt'irlltiielj:~) 1"',"1')·, 1" i i, ',", 11, ',n ( ' , "  li:",lji ''' j - (a)~l:jaliulmll with tjae,,~wluc,hia ~ ~_,~c1 'auth~ri~ of tqat to~eild (~q: and luly 0itg&j'i hi_,, ql'i-curl~ ~ 1wei&q' ~\uteacy main~,w;iij) 'f)j' iipue4 ir,y, ~;la~-, na~ }401l~wy ~the; lpwn4tipnal!~ "{~c­tion\ 'and; pey~qpment, tt)e' btejjlati~ ,pevfm,op~~j ,~ia­tiojl:w ,the ~tiqna1 ,j'i~-co~ti~ '~f tlle ~,,;·tor in~mation~ settl~men~ or anr, comm~r~ial bank notified by thecihlttai go~6rhmeni'\ii{'ihis'l~hait:lifo\7ided 'that utey are rel>ayable within a period of five years; ","'~l' - '1 1 "~~' ie "',,  '' i - j - (c) government' ~uriiles' of that foreign country maturing within five years; - - - - - 46c (1) - - - - - national industrial (2) the amount in the said fund shall be applied by the bank only to the following objects, namely:-credi~ (lolli term operations) fund 15 of im8 63 of 1951 <a) the making to the development bank of loans and advances for the purpose of the purchase of, or subscription to, stocks, shares, bonds oor debentures issued by the industrial finance corporation of india established under the lnd~strial finance corporation at't; 1i48, a state financial corporation established under the state financial corporations act, 1951, or any other financial institution which may be notified by the central government in this behalf, or for the purposes of any other business of· the development bank; - - - - - 11 of 1922 48, (1) notwithstanding anything contained in the indian income-tax act, 1922, or any other enactment for the time being in force relating to income-tax or super-tax, the bank shall not be liable to pay income-tax or super-tax on any of its income, profits or gains  - - - - exemption of bank from incometax and supertax 53 (1) the bank shall pre~ and transmit to the central govern-returns ment'"ii :weeldy" 'a&owtt of- the-·i&ml'e ~tcjah,,·:the banking department in such tonn as the central government may, by notification in the gazette of india, prescribe the central government shall cause these accounts to be published weekly in the gazette of india  - - - - - iiill _  = v  arv jba,k of liad1& act, 11k (shf'i h m peltel ministe~ of finance) 