Question
Bank to have the right to transact Government business
in India is provided in section____ of The RBI Act 1934Solution
Section 21 of The RBI Act 1934.  S.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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