What are the Obligation of the Bank to transact Government business? Section 20 of Reserve Bank of India Act 1934
The Bank shall undertake to accept monies for account of the Central Government, and to make payments up to the amount standing to the credit of its account, and to carry out its exchange, remittance and other banking operations, including the management of the public debt of the Union.
(3) advance money on mortgage of, or otherwise on the security of, immovable property or documents of title relating thereto, or become the owner of immovable property, except so far as is necessary for its own business premises and residences for its officers and servants;
(4) make loans or advances;
(5) draw or accept bills payable otherwise than on demand;
(6) allow interest on deposits or current accounts.
Section 3 - Establishment and incorporation of Reserve Bank
Section 4 - Capital of the Bank
Section 5 - Increase and reduction of Share Capital
Section 6 - Offices, branches and agencies
Section 8 - Composition of the Central Board and term of office of Directors
Section 9 - Local Boards, their constitution and functions
Section 10 - Disqualifications of Directors and members of Local Boards
Section 11 - Removal from and vacation of office
Section 12 - Casual vacancies and absences
Section 13 - Meetings of the Central Board
Section 17 - Business which the Bank may transact
Section 18 - Power of direct discount
Section 18A - Validity of loan or advance not to be questioned
Section 19 - Business which the Bank may not transact
CHAPTER III CENTRAL BANKING FUNCTION
Section 20 - Obligation of the Bank to transact Government business