21. 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 ⁴[its] cash balances with the Bank:

Provided that nothing in this sub-section shall prevent the ⁵[Central

Government] ⁶[* * *] from carrying on money transactions at places where the Bank has no branches or agencies, and the ⁷[Central Government] ⁸[***] may hold at such places such balances as ⁹[it] may require.

(2) The ¹⁰[Central Government] ¹¹[***] 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 ¹²[Central Government] shall decide what the conditions shall be.

¹³[(4) Any agreement made under this section shall be laid, as soon as may be after it is made, before Parliament.]

¹⁴[* * * *]

Note:

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, Act 37 of 1956, for "their" (w.e.f. 1-11-1956).

4. Subs. by s. 104, Act 37 of 1956, for "their" (w.e.f. 1-11-1956).

5. Subs. by the M.O. 1937, for "G.G. in C."

6. The words "or any State Government" omitted by s. 104, Act 37 of 1956, (w.e.f. 1-11-1956).

7. Subs. by the M.O. 1937, for "G.G. in C."

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, Act 37 of 1956, for "their" (w.e.f. 1-11-1956).

10. Subs. by the M.O. 1937, for "G.G. in C."

11. The words "and each State Government" omitted by s. 104, Act 37 of 1956, (w.e.f. 1-11-1956).

12. Subs. by the M.O. 1937, for "G.G. in C."

13. Subs. by s. 104 Act 37 of 1956, for sub-section (4) (w.e.f. 1-11-1956).

14. Sub-section (5) ins. by Act. 32 of 1951, s. 11 (w.e.f. 1-11-1951), omitted by Act 37 of 1956, s. 104 (w.e.f. 1-11-1956).