- All moneys received on account of the Municipal Fund of a Municipality, shall be deposited with the State Bank of India or any of its subsidiaries, or with any nationalized bank in the municipal area of the Municipality and shall be credit to an account to be called :-(a)in the case of Municipal Corporation, the account of the Municipal Corporation; or(b)in the case of Municipal Council, the account of the Municipal Council; or(c)in the case of a Nagar Panchayat, the account of the Nagar Panchayat,as the case may be, to which it belongs :Provided that if in the municipal area of the Municipality, there is no branch of the State Bank of India or any one of its subsidiaries or any nationalized bank, the moneys on account of the Municipal Fund may, with the approval of the Government, be deposited in any other bank in the municipal area, or in any branch of the State Bank of India or any of its subsidiaries or in any nationalized bank, outside the municipal area:Provided further that all moneys on account of the Municipal Fund of a Municipality shall be deposited in one bank account only :Provided further that the amount of the Municipal Fund of a Municipality may be transferred from one bank to another bank through a resolution passed in this behalf by a Municipality in the prescribed manner.
