Amendment status not verified — confirm the current text below against the official source.
Vesting, custody and investment of Grama Fund :– (1) The Grama Fund shall vest in the Grama Sasan and held by it in trust for the purposes of this Act subject to the provisions therein contained. (2) The Grama Fund shall be deposited in the name of the Grama Panchayat in the Savings Bank of the nearest Post Office and if there is a treasury or Sub-treasury nearer than a Post Office, the Grama Panchayat shall open a personal ledger account with the treasury and the Grama Fund shall be deposited in it and at no time the cash balance in the cus- tody of the Sarpanch shall exceed the sum fixed by the Collector: Provided that the Grama Panchayat may deposit any part of the Grama Fund as it may decide in such Central Co-operative Bank as may be approved by the Registrar of Co-operative Societies: [Provided further that the Grama Panchayat may deposit the funds received under the Jawahar Rozgar Yojana being part of the Grama Fund, in a separate Savings Bank Account in the nearest Post Office, Co-opera- tive Bank, Nationalised Bank or Scheduled Bank. Explanation :– The expressions “Co-operative Bank” and “Sched- uled Bank” shall have the same meaning as respectively assigned to them in the Deposit Insurance Corporation Act, 47 of 1961 and the Reserve Bank of India Act, 2 of 1934 and the expression “Nationalised Bank” shall mean a corresponding new Bank constituted under Sub-Section (1) of Section 3 of the Banking Companies (Acquisition and Transfer of Under- takings) Act 40 of 1980.] 1[(3) A Grama Panchayat may invest any surplus amounts from out of its Grama Fund in Government Securities issued either by the State Government or Government of India or in such other securities including Savings Certificates or in fixed current or savings deposits in Co-operative Societies approved by the Registrar of Co-opeative Societies, Orissa in buying debenturers of Orissa Provincial Co-operative Land Mortgage Bank Limited, or with the approval of the State Government in purchasing shares in the Grain Golla Societies or approved Societies other than grain gollas or in Government Companies within the meaning of the Companies Act, 1956 (I of 1956).