Lawgist21Bank to have the right to transact Government business in India
(1) The 1[Central Government] 2*** shall entrust the Bank, on such conditions as may be agreed upon, with all 3[its] money, remittance, exchange and banking transactions in India, and, in particular, shall deposit free of interest all 3[its] cash balances with the Bank:
Provided that nothing in this sub-section shall prevent the 1[Central Government] 4*** from carrying on money transactions at places where the Bank has no branches or agencies, and the 1 [Central Government] 2*** may hold at such places such balances as 5[it] may require.
(2) The 1[Central Government] 6*** 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 1[Central Government] shall decide what the conditions shall be.
7[(4) Any agreement made under this section shall be laid, as soon as may be after it is made, before Parliament.]
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1. Subs. by the M.O. 1937, for “G.G. in C.
2. The words "and the State Governments" omitted by Act 37 of 1956, s. 104 (w.e.f. 1-11-1956).
3. Subs. by s. 104, ibid., for "their" (w.e.f. 1-11-1956).
4. The words "or any State Government" omitted by s. 104, ibid. (w.e.f. 1-11-1956).
5. Subs. by s. 104, ibid., for "they" (w.e.f. 1-11-1956).
6. The words "and each State Government" omitted by s. 104, ibid. (w.e.f. 1-11-1956).
7. Subs. by s. 104, ibid. for sub-section (4) (w.e.f. 1-11-1956).
8. Sub-section (5) omitted by s. 104, ibid. (w.e.f. 1-11-1956) which was inserted by Act 32 of 1951, s. 3 (w.e.f. 1-11-1951).
- 20 Obligation of the Bank to transact Government business
- 20A [Omitted.]
- 21 Bank to have the right to transact Government business in India
- 21A Bank to transact Government business of States on agreement
- 21B Effect of agreements made between the Bank and certain States before the 1st November, 1956
- 22 Right to issue bank notes
- 23 Issue Department
- 24 Denominations of notes
- 25 Form of bank notes
- 26 Legal tender character of notes
- 26A Certain bank notes to cease to be legal tender
- 27 Re-issue notes
- 28 Recovery of notes lost, stolen, mutilated or imperfect
- 28A Issue of special bank notes and special one rupee notes in certain cases
- 29 Bank exempt from stamp duty on bank notes
- 30 Powers of Central Government to supersede Central Board
- 31 Issue of demand bills and notes
- 32 [Omitted.]
- 33 Assets of the Issue Department
- 34 Liabilities of Issue Department
- 35 [Omitted.]
- 36 [Omitted.]
- 37 Suspension of assets requirements as to foreign securities
- 38 Obligations of Government and the Bank in respect of rupee coin
- 39 Obligation to supply different forms of currency
- 40 Transactions in foreign exchange
- 41A [Omitted.]
- 42 Cash reserves of scheduled banks to be kept with the Bank
- 43 Publication of consolidated statement by the Bank
- 43A Protection of action taken in good faith
- 44 [Omitted.]
- 45 Appointment of agents
