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      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?
      A Ninety days Correct Answer Incorrect Answer
      B One hundred and eighty days Correct Answer Incorrect Answer
      C Six months Correct Answer Incorrect Answer
      D Twelve months Correct Answer Incorrect Answer
      E Fifteen months Correct Answer Incorrect Answer

      Solution

      Section 17(2)(b) allows the Bank to purchase, sell and rediscount bills of exchange and promissory notes bearing a scheduled bank's or State co-operative bank's 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.

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