Section 17(4H) in The Reserve Bank of India Act, 1934
(4H)the making the Small Industries Bank of loans and advances—(a)repayable on demand or on the expiry of fixed periods not exceeding ninety days from the date of such Ioan 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;(4-I) the making to scheduled banks, the Exim Bank the Reconstruction Bank or the Small Industries Bank the Industrial Finance Corporation and any other financial institution as may, on the recommendation of the Bank, be approved in this behalf by the Central Government of loans and advances repayable on demand or otherwise and against such security and on such other terms and conditions as may be approved in this behalf by the Central Board for the purpose of enabling such banks, or financial institution, as the case may be, to purchase foreign exchange from the Bank for the purpose of financing the import of capital goods or for such other purposes as may be approved by the Central Government;
