Power of the Board to take temporary loans or overdrafts

Power of the Board to take temporary loans or overdrafts.—Notwithstanding anything contained in this Act, the Board may,—

1. (i) borrow amounts by means of temporary overdraft or otherwise by placing the securities held by the Board in its reserve funds or on security of the fixed deposits of the Board in its banks;
2. (ii) obtain advances from such banks on pledge or hypothecation of its current assets without the previous sanction of the Government: Provided that such temporary overdrafts or other loans,—

1. (a) shall not at any time have a longer currency than six months; and
2. (b) shall not be taken without the previous sanction of the Government, if at any time in any year the amount of such overdrafts, or other loans exceeds such amount not exceeding ten lakhs of rupees, as the Government may fix in this behalf: