Amendment status not verified — confirm the current text below against the official source.
Bank 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.] 8* * * * * 9[21A. Bank to transact Government business of States on agreement.—(1) The Bank may by agreement with the Government of any 10*** State 11*** undertake— (a) all its money, remittance, exchange and banking transactions in India, including in particular, the deposit, free of interest, of all its cash balances with the Bank; and (b) the management of the public debt of, and the issue of any new loans by, that State. (2) Any Agreement made under this section shall be laid, as soon as may be after it is made, before Parliament.] 12 [21B. Effect of agreements made between the Bank and certain States before the 1st November, 1956.—(1) Any agreement made under section 21 or section 21A between the Bank and the Government of a State specified in the Explanation below and in force immediately before the 1st day of November, 1956, shall, as from that day have effect as if it were an agreement made on that day under section 21A between the Bank and the Government of the corresponding State subject to such modifications, if any, being of a character not affecting the general operation of the agreement, as may be agreed upon between the Bank and the Government of the corresponding State, or in default of such agreement, as may be made therein by order of the Central Government. Explanation.—In this sub-section “corresponding State’’ means,— (a) in relation to the agreement between the Bank and the State of Andhra, the State of Andhra Pradesh;