Section 34: Prohibited activities.

The Bank shall not-(a) engage in trade or otherwise have a direct interest in any commercial, agricultural or industrial undertaking, except as provided in sections 27 to 32 of this Act, or in any other undertaking, except such interest which the Bank may in any way acquire in the course of the satisfaction of debts due to it, and provided that all such interests so acquired shall be disposed of at the earliest suitable time;
(b) except as provided in section 31 of this Act, purchase the shares of any corporation or company including the shares of any banking institution ;
(c) grant loan upon the security of any shares ;
(d) subject to the provisions of section 38 of this Act, grant secured advances or advances secured otherwise than as laid down in section 29 (1) (a) and (b) of this Act:
Provided that in the event of any debts due to the Bank becoming in the opinion of the Bank endangered, the Bank may secure such debts on any real or other property of the debtor and may acquire such property which shall be re-sold at the earliest suitable time ;
(e) purchase, acquire or lease real property except in accordance with the provision of paragraph (d) of this section and except so far as the Bank shall consider necessary or expedient for the provision or future provision of business premises for the Bank and its agencies and any clearing houses set up as provided in section 47 of this Act and residences for the Governor of the Bank;
(f) draw or accept bills payable otherwise than on demand ;
(g) pay interest on deposits except deposits in respect of cash reserve and special deposits as stipulated in section 45 (1) (a) and (c) of this Act;
(h) accept for discount or as security for an advance made by the Bank bills or notes signed by members of the Board or by officers and other employees of the Bank; and
(i) open accounts for or accept deposits from persons other than as provided in section 27 (b) and (c) of this Act.