Reserve Bank of India Act,1934
Act No : 2
Section : Bank to have the right to transact Government business in India
21. Bank to have the right to transact Government business in India.- (1) The Central Government 8*** shall entrust the Bank, on such conditions as may be agreed upon, with all 9*[its] money, remittance, exchange and banking transactions in India, and, in particular, shall deposit free of interest all 9*[its] cash balance with the Bank: Provided that nothing in this sub-section shall prevent the Central Government 10*** from carrying on money transactions at places where the Bank has no branches or agencies, and the Central Government 8*** may hold at such places such balances at 11*[it] may require. (2) The Central Government 12*** shall entrust the Bank, on such conditions as may be agreed upon, with the management of the public debt and with the issue of any new loans. (3) In the event of any failure to reach agreement on the conditions referred to in this section the Central Government shall decide what the conditions shall be. ---------------------------------------------------------------------- 1. Subs. by the M. O. 1937, for certain words. 2. The words "the Secretary of State" omitted by the A. O. 1950. 3. The words "and the Governments of Part A States" omitted by Act 37 of 1956, s. 104 (w.e.f. 1-11-1956). 4. Subs. by s. 104, ibid., for "their accounts respectively" (w.e.f. 1-11-1956). 5. Subs. by s. 104, ibid., for certain words (w.e.f. 1-11-1956). 6. Ins. by s. 104, ibid. (w.e.f. 1-11-1956). 7. S. 20A (Transaction of business for British Military Administration, Burma.) which was temporarily ins. by Ordinance 19 of 1945 has now been omitted owing to the repeal of the Ordinance by Act 11 of 1947. 8. The words "and the State Governments" omitted by Act 37 of 1956, s. 104 (w.e.f. 1-11-1956). 9. Subs. by s. 104, ibid., for "their" (w.e.f. 1-11-1956). 10. The words "or any State Government" omitted by s. 104, ibid. (w.e.f. 1-11-1956). 11. Subs. by s. 104, ibid., for "they" (w.e.f. 1-11-1950). 12. The words "and each State Government" omitted by s. 104, ibid. (w.e.f. 1-11-1956). 24L 1*[(4) Any agreement made under this section shall be laid, as soon as may be after it is made, before Parliament.] 2*[* * * * *
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