Section 18(3) in The Reserve Bank of India Act, 1934
(3)make loans or advances to—(a)a State co-operative bank, or(b)on the recommendation of a State co-operative bank, to a co-operative society registered within the area in which the State co-operative bank operates, or(c)any other person, repayable on demand or on the expiry of the fixed periods, not exceeding ninety days, on such terms and conditions as the Bank may consider to be sufficient.
