Reserve Bank of India Act, 1934 · Chapter III: Central Banking Functions
Section 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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Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.