21. Bank to have the
right to transact Government business in India.- (1)
The Central Government shall entrust the Bank, on such conditions
as may be agreed upon, with all its money, remittance, exchange
and banking transactions in India, and, in particular, shall
deposit free of interest all its cash balances with the Bank:
Provided that nothing in this sub-section shall prevent the
Central Government from carrying on money transactions at
places where the Bank has no branches or agencies, and the
Central Government may hold at such places such balances as
it may require.
(2) The Central Government 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 Central Government
shall decide what the conditions shall be.
(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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