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      Question

      Under Section 17(2)(a) of the RBI Act, 1934, bills of

      exchange and promissory notes arising out of the export of goods from India may be purchased or rediscounted by the Bank if they mature within what period?
      A One hundred and eighty days Correct Answer Incorrect Answer
      B Ninety days Correct Answer Incorrect Answer
      C Fifteen months Correct Answer Incorrect Answer
      D Three hundred and sixty days Correct Answer Incorrect Answer
      E Twelve months Correct Answer Incorrect Answer

      Solution

      Section 17(2)(a) permits the Bank to purchase, sell and rediscount bills of exchange and promissory notes bearing two or more good signatures, one of which must be that of a scheduled bank. For bills arising out of the export of goods from India, the maturity limit is one hundred and eighty days, while in any other case it is ninety days, exclusive of days of grace. The correct maturity period for export-related bills is one hundred and eighty days.

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