PROVISIONS AS TO CERTAIN CORPORATIONS AND INTER-STATE AGREEMENTS AND ARRANGEMENTSCentral

Section 104 of The States Reorganisation Act, 1956 in hindi

With effect from the appointed day, the following amendments shall be made in the Reserve Bank of India Act, 1934 (2 of 1934), namely:―

(1)in section 2, in the proviso to clause (f), for the words "any Central co-operative society in that State to be a State co-operative bank", the words "any one or more co-operative societies carrying on business in that State to be a State co-operative bank or banks" shall be substituted.
(2)in section 20,―
1. (a)the words and letter "and the Governments of Part A States" shall be omitted;
2. (b)for the words "their accounts respectively", the words "its account" shall be substituted;
3. (c)for the words "their exchange", the words "its exchange" shall be substituted;
4. (d)after the words "public debt", the words "of the Union" shall be inserted;
(3)in section 21,―
1. (a)in sub-section (1),―
  1. (i)the words "and the State Governments" wherever they occur, shall be omitted;
  2. (ii)for the word "their", at both places where "it" occurs, the word its shall be substituted;
  3. (iii)in the proviso, the words "or any State Government" shall be omitted, and for the word "they" the word "it" shall be substituted;
2. (b)in sub-section (2), the words "and each State Government" shall be omitted;
3. (c)for sub-section (4), the following sub-section shall be substituted, namely:― "(4) Any agreement made under this section shall be laid, as soon as may be after it is made, before Parliament"; and
4. (d)sub-section (5), shall be omitted;
(4)in sub-section (1) of section 21-A, the word and letter "Part B" shall be omitted;
(5)after section 21-A, the following section shall be inserted, namely:― 21-B. Effect of agreements made between the Bank and certain States before the Ist November, 1956.―"(1) Any agreement made under section 21 or section 21-A between the Bank and the Government of a State specified in the Explanation below and in force immediately before the Ist day of November, 1956, shall, as from that day have effect as if it were an agreement made on that day under section 21-A 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,―
1. (a)in relation to the agreement between the Bank and the State of Andhra, the State of Andhra Pradesh;
2. (b)in relation to the agreement between the Bank and any other Part A State as it existed before the Ist day of November, 1956, the State with the same name; and
3. (c)in relation to the agreement between the Bank and the Part B State of Mysore or Travancore-Cochin as it existed before the Ist day of November, 1956, the State of Mysore or Kerala respectively.
(2)Any agreement made under section 21-A between the Bank and the Government of the Part B State of Hyderabad, Madhya Bharat or Saurashtra shall be deemed to have terminated on the 31st day of October, 1956.".

Summary

This section modifies the Reserve Bank of India Act of 1934 to fit the new state structure.
It changes the definition of a State co-operative bank to allow one or more societies in a state to hold that title.
It removes old references to Part A States regarding how the Bank handles government accounts and exchange.
Agreements between the Bank and states like Andhra, Mysore, or Kerala that existed before November 1956 remain valid.
Financial agreements with the former states of Hyderabad, Madhya Bharat, and Saurashtra were ended on October 31, 1956.
Any new agreements made under these rules must be shown to Parliament as soon as possible.

Practical examples

1Sarah, a clerk at the Reserve Bank, updates the system on November 1, 1956, to show that the old agreement with the State of Andhra now applies to the new State of Andhra Pradesh.

2A co-operative society in the new State of Bombay is officially recognized as a State co-operative bank under the updated rules so it can work directly with the Reserve Bank.

FAQ

1. How does Section 104 of the States Reorganisation Act 1956 affect the Reserve Bank of India Act?

Section 104 of the States Reorganisation Act 1956 amends several sections of the Reserve Bank of India Act 1934 to update state names and financial agreement rules.

2. What happened to the Reserve Bank agreements with Hyderabad on October 31, 1956?

Under Section 104 of the States Reorganisation Act 1956, the agreement between the Bank and the State of Hyderabad is deemed to have terminated on that date.

3. Where must agreements made under the amended Reserve Bank of India Act be presented?

According to Section 104 of the States Reorganisation Act 1956, any such agreement must be laid before Parliament.

Test yourself

Q1.Under Section 104 of the States Reorganisation Act 1956, which date marks the termination of agreements with Saurashtra?

Q2.According to Section 104 of the States Reorganisation Act 1956, the "corresponding State" for the old State of Andhra is which state?

Q3.Under Section 104 of the States Reorganisation Act 1956, what must happen after an agreement is made between the Bank and a State?

Q4.Which of these was a result of Section 104 of the States Reorganisation Act 1956 regarding the Reserve Bank of India Act?

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