Section 43 of The Bihar Reorganisation Act, 2000 in hindi — Treasury and bank balances
Bare section text
Official Legislative Text
The total of the cash balances in all treasuries of the State of Bihar and the credit balances of the State with Reserve Bank of India, the State Bank of India or any other bank immediately before the appointed day shall be divided between the States of Bihar and Jharkhand according to the population ratio: Provided that for the purposes of such division, there shall be no transfer of cash balances from any treasury to any other treasury and the apportionment shall be effected by adjusting the credit balance of the two States in the books of the Reserve Bank of India on the appointed day: Provided further that if the State of Jharkhand has no account on the appointed day with the Reserve Bank of India, the adjustment shall be made in such manner as the Central Government may, by order, direct.
Educational Study Layer
Summary
- The total amount of cash held in all government treasuries and the money kept in banks is divided between Bihar and Jharkhand.
- This division is based on the population ratio, which is the balance of people living in each state.
- There is no physical moving of cash from one treasury building to another.
- Instead, the division is done by changing the numbers in the accounts at the Reserve Bank of India on the day the states are reorganised.
- If Jharkhand does not have its own account with the Reserve Bank of India on that day, the Central Government will decide how to make the adjustment.
Practical examples
FAQ
1. Will armored trucks move cash between states under Section 43 of the Bihar Reorganisation Act, 2000?
No, Section 43 of the Bihar Reorganisation Act, 2000 specifically says there shall be no transfer of cash balances between treasuries.
2. Who manages the adjustment of funds under Section 43 of the Bihar Reorganisation Act, 2000?
The adjustment is primarily effected through the books of the Reserve Bank of India on the appointed day as per Section 43 of the Bihar Reorganisation Act, 2000.
Practice Quiz
Q1.How does Section 43 of the Bihar Reorganisation Act, 2000 handle cash in local treasuries?
Q2.Which institution's books are used to divide the bank balances under Section 43 of the Bihar Reorganisation Act, 2000?
Q3.Under Section 43 of the Bihar Reorganisation Act, 2000, what happens if Jharkhand lacks an RBI account on the appointed day?
Q4.According to Section 43 and the definitions in the Bihar Reorganisation Act, 2000, what is the population ratio for dividing funds?