Question

Under Section 17(2)(b) of the RBI Act, 1934, bills drawn or issued for financing agricultural operations or the marketing of crops may be purchased or rediscounted if they mature within what period?

Q: Answer-Under Section 17(2)(b) of the RBI Act, 1934, bills drawn or issued for financing agricultural operat...

Section 172b allows the Bank to purchase, sell and rediscount bills of exchange and promissory notes bearing a scheduled banks or State co-operative banks signature, drawn or issued for the purpose of financing agricultural operations or the marketing of crops, and maturing within fifteen months from the date of purchase or rediscount, exclusive of days of grace. The figure fifteen months was substituted for nine months by Act 32 of 1951. The correct maturity is fifteen months.