(1) The assets of the Issue Department shall consist of gold coin, gold bullion, 1[foreign securities], rupee coin and rupee securities to such aggregate amount as is not less than the total of the liabilities of the Issue Department as hereinafter defined.
2[(2) The aggregate value of the gold coin, gold bullion and foreign securities held as assets and the aggregate value of the gold coin and gold bullion so held shall not at any time be less than two hundred crores of rupees and one hundred and fifteen crores of rupees, respectively.]
3[(3) The remainder of the assets shall be held in rupee coin, Government of India rupee securities of any maturity, promissory notes drawn by the National Bank for any loans or advances under clause (4E) of section 17 and such bills of exchange and promissory notes payable in India as are eligible for purchase by the Bank under sub-clause (a) or sub-clause (b) or sub-clause (bb) of clause (2) of section 17 or under clause (1) of section 18.]
(4) For the purposes of this section, gold coin the gold bullion shall be valued at 4[a price not exceeding the international market price for the time being obtaining], rupee coin shall be valued at its face value, and securities shall be valued 5[at rates not exceeding the market rates] for the time being obtaining.
(5) Of the gold coin and gold bullion held as assets, not less than seventeen-twentieths shall be held in 6[India], and all gold coin and gold bullion held as assets shall be held in the custody of the Bank or its agencies:
Provided that gold belonging to the Bank which is in any other bank or in any mint or treasury or in transit may be reckoned as part of the assets.
7[(6) For the purposes of this section, the foreign securities which may be held as part of the assets shall be--
(i) securities of the following kinds payable in the currency of any foreign country which is a member of the International Monetary Fund, namely:--
(a) balances with the bank which is the principal currency authority of that foreign country and any other balances or securities in foreign currency maintained with or issued by the International Monetary Fund, the International Bank for Reconstruction and Development, the International Development Association or the International Finance Corporation 8[or Asian Development Bank] or the Bank for International Settlements or 9[any banking or financial institution 10[approved] by the Central Government] in this behalf provided that they are repayable within a 11[period of ten years];
(b) bills of exchange bearing two or more good signatures and drawn on and payable at any place in that foreign country and having a maturity not exceeding ninety days; and
(c) Government securities of that foreign country maturing 12[within ten years];
(ii) any drawing rights representing a liability of the International Monetary Fund.]
1Subs. by Act 62 of 1948, s. 7 and the Schedule, for "sterling securities" (w.e.f. 1-1-1949).
2Subs. by Act 48 of 1957, s. 2, for sub-section (2) (w.e.f. 31-10-1957).
3Subs. by Act 61 of 1981, s. 61 and the Second Schedule, for sub-section (3) (w.e.f. 12-7-1982).
4Subs. by Act 8 of 1991, s. 2, for "0.118489 grammes of fine gold per rupee" (w.e.f. 15-10-1990).
5Subs. by Act 58 of 1968, s. 26, for "at the market rate" (w.e.f. 1-2-1969).
6Subs. by Act 32 of 1951, s. 2, for "the States" (w.e.f. 1-11-1951).
7Subs. by Act 51 of 1974, s. 10, for sub-section (6) (w.e.f. 13-12-1974).
8Ins. by Act 24 of 1978, s. 6 (w.e.f. 21-7-1978).
1Subs. by s. 6, ibid., for "any commercial bank notified by the Central Government" (w.e.f. 21-7-1978).
9Subs. by Act 1 of 1984, s. 4, for "notified" (w.e.f. 15-2-1984).
10Subs. by Act 24 of 1978, s. 6, for "period of five years" (w.e.f. 21-7-198).
11Subs. by s. 6, ibid., for "within five years" (w.e.f. 21-7-198).