- 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 nationalised bank or with the Nagaland State Cooperative Bank in the Municipal Area of the Municipality and shall be credited to an account to be called.(a)In the case of Municipal Council, the account of the Municipal Council; or(b)In the case of a Town Council, the account of the Town Council, 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 anyone of its subsidiaries or any Nationalised Bank or with the Nagaland State Cooperative 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 Nationalised Bank or the Nagaland State Cooperative 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.
