Section 86(3) in The Gujarat Municipalities Act, 1963
(3)It shall be lawful for a municipality to deposit with the State Bank of India or such other Bank as may hereafter be appointed to conduct the business of Government treasury at Ahmedabad or in any other Scheduled Bank or in any Co-operative Bank or with the sanction of the State Government in any bank in the State of Gujarat any surplus funds in its hands which may not be required for current charges, and to invest such funds in public securities in the name of the municipality, and from time to time to dispose of such securities as may be necessary.Explanation. - For the purposes of this sub-section, a scheduled bank shall mean a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934).
