AMENDMENTS TO THE RESERVE BANK OF INDIA ACT, 1934
1. Amendment of Section 2.—In the Reserve Bank of India Act, 1934 (2 of 1934) (hereinafter referred
to as the principal Act), in section 2, after clause (ccc), the following clauses shall be inserted, namely:—
'(ccci) “National Bank for Financing Infrastructure and Development” means the Institution
established under section 3 of the National Bank for Financing Infrastructure and Development Act,
2021;
(cccii) “other development financial institution” means a development financial institution licensed
under section 29 of the National Bank for Financing Infrastructure and Development Act, 2021;'.
2. Amendment of section 17.—In section 17 of the principal Act,—
(a) in clause (4G), after the words “or the Small Industries Bank”, the words “or the National Bank
for Financing Infrastructure and Development or other development financial institution” shall be
inserted;
(b) in clause (4-I), after the words “the Industrial Finance Corporation”, the words “, the National
Bank for Financing Infrastructure and Development or other development financial institution” shall
be inserted;
22
(c) after clause (4K), the following clause shall be inserted, namely:—
“(4L) the making to the National Bank for Financing Infrastructure and Development or other
development financial institution of loans and advances—
(a) repayable on demand or on the expiry of a fixed period not exceeding ninety days, from
the date of such loan or advance against the security of stocks, funds and securities (other than
immovable property) in which a trustee is authorised to invest trust money by any law for the
time being in force in India; or
(b) against the security of bills of exchange or promissory notes, arising out of bona fide
commercial or trade transactions bearing two or more good signatures and maturing within five
years from the date of such loan or advance;”;
(d) in clause (12B), after the words “the Industrial Finance Corporation,”, the words “the National
Bank for Financing Infrastructure and Development or other development financial institution,” shall
be inserted.
3. Amendment of section 42.—In section 42 of the principal Act, in sub-section (1), in the Explanation,
in clause (c), in sub-clause (ii), after the words “or from the Small Industries Bank”, the words “or from the
National Bank for Financing Infrastructure and Development or from the other development financial
institution” shall be inserted.
4. Amendment of section 46C.—In section 46C of the principal Act, in sub-section (2),—
(a) in clause (c), after the words “or the Small Industries Bank,” at both the places, the words “or
the National Bank for Financing Infrastructure and Development or the other development financial
institution,” shall be inserted;
(b) in clause (d), after the words “or the Small Industries Bank,”, the words “or the National Bank
for Financing Infrastructure and Development or the other development financial institution,” shall be
inserted.