PART II
AMENDMENT TO THE RESERVE BANK OF INDIA ACT, 1934
132. Amendment of section 17 of Act 2 of 1934..
In the Reserve Bank of India Act, 1934, in section 17, after clause (1), the following clause shall be inserted, namely:–
“(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;”.
Notes on Clauses:
Clause 132 of the Bill seeks to amend section 17 of the Reserve Bank of India Act, 1934 relating to business which the bank may transact.
Section 17 authorises the bank to carry on and transact several kinds of business as specified in the said section.
It is proposed to insert a new clause (1A) in the said section so as to allow 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.