Issue of short term bills.

(1) Subject to the provisions of section 31 of the Reserve Bank of India Act, 1934, any local authority to which the Government may by notification in the Gazette extend the provisions of this section, may, with the previous sanction of the Government, borrow money by means of the issue of bills or promissory notes payable within any period, not exceeding twelve months, for any purpose for which such local authority may lawfully borrow money under the provisions of this Act. (2) The Government may, by general or special order, regulate the conditions on which money may be borrowed or repaid under this section.