Amendment status not verified — confirm the current text below against the official source.
Custody and investment of Municipal Fund.-(1) In places where there is a Government treasury or sub-treasury or a bank to which the Government treasury business has been made over, the Municipal fund shall be kept in such treasury, sub-treasury or bank. (2) In places where there is no such treasury or sub-treasury or banks, the Municipal fund may, with the previous approval of the State Government, be deposited with any banker who furnishes such security for the safe custody and repayment on demand of the fund so deposited as the State Government may, in each case , think sufficient. (3) A Council may, from time to time with the previous sanction of the State Government, invest any portion of its Municipal fund in securities of the Government of India or in such other securities, including fixed deposits in banks, as the State Government may approve in this behalf, and may vary such investments for others of the like nature; and the income resulting from the securities and proceeds of the sale of the same shall be credited to the Municipal Fund. (4) Notwithstanding anything contained in sub-sections (1), (20 and (3), a Council shall maintain cash balance not less than such amount as may be prescribed by rules in the office for meeting the current charges and may recoup the same as and when such cash balance in depleted on account of expenditure therefrom.