Section 21A. Bank to transact Government business of States on agreement

9[ 21A. Bank to transact Government business of States on agreement.— (1) The Bank may by agreement with the Government of any[10] * State[11] * undertake — (a) all its money, remittance, exchange and banking transactions in India, including in particular, the deposit, free of interest, of all its cash balances with the Bank; and (b) the management of the public debt of, and the issue of any new loans by, that State. (2) Any Agreement made under this section shall be laid, as soon as may be after it is made, before Parliament.] 12 [ 21B. Effect of agreements made between the Bank and certain States before the 1st November, 1956.— (1) Any agreement made under section 21 or section 21A between the Bank and the Government of a State specified in the Explanation below and in force immediately before the 1st day of November, 1956, shall, as from that day have effect as if it were an agreement made on that day under section 21A between the Bank and the Government of the corresponding State subject to such modifications, if any, being of a character not affecting the general operation of the agreement, as may be agreed upon between the Bank and the Government of the corresponding State, or in default of such agreement, as may be made therein by order of the Central Government. Explanation . — In this sub-section "corresponding State'' means, — (a) in relation to the agreement between the Bank and the State of Andhra, the State of Andhra Pradesh; 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, ibid ., for "their" (w.e.f. 1-11-1956). 4. The words "or any State Government" omitted by s. 104, ibid . (w.e.f. 1-11-1956). 5. Subs. by s. 104, ibid ., for "they" (w.e.f. 1-11-1956). 6. The words "and each State Government" omitted by s. 104, ibid . (w.e.f. 1-11-1956). 7. Subs. by s. 104, ibid . for sub-section (4) (w.e.f. 1-11-1956). 8. Sub-section (5) omitted by s. 104, ibid . (w.e.f. 1-11-1956) which was inserted by Act 32 of 1951, s. 3 (w.e.f. 1-11-1951). 9. Ins. by Act 32 of 1951, s. 12 (w.e.f. 1-11-1951).