Section 21(1) in The Reserve Bank of India Act, 1934
(1)The Central Government shall entrust the Bank, on such conditions as may be agreed upon, with all its money, remittance, exchange and banking transaction in India, and, in particular, shall deposit free of interest all its cash balances with the Bank:Provided that nothing in this sub-section shall prevent the Central Government from carrying on money transactions at places where the Bank has no branches or agencies, and the Central Government may hold at such places such balances as it may require.
