Reserve Bank of India has been appointed as the banker to the State Government of Telangana with immediate effect.
An order to this effect was issued by K. Ramakrishna Rao, Special Secretary to Government of Telangana on Monday. Accordingly, the conduct of general banking business of the State including payments, receipts, exchange, remittances moneys and management of public debt would be handled by the RBI.
The RBI was authorised to open an account in the books of Central Accounts Section, RBI, Nagpur in the name of State Government of Telangana with an amount of Rs. 1.38 crore. The other formalities including documentation and execution of agreement between RBI and the State would be executed by the authorised officials of Government of Telangana in due course.
The RBI was also authorised to open Subsidiary General Ledger (SGL) Account in the name of Government of Telangana in its offices for management of public debt and investment of surplus funds. The Bank was authorised to make investments of its surplus funds in the approved securities agreed to by the State.
NSSF loans apportionedConsequent up on the reorganisation of the existing State of AP Reorganisation Act 2014, the Government of Telangana notified that 41.68 per cent, Government of AP (National Small Savings Fund) (Non-transferable) Special Securities 1999 to the extent of Rs. 105 crore being the apportioned amount as per the provisions of the Act shall be the liability of the State of Telangana.
