Section 32:
State Bank to act as agent of the Reserve Bank.
(1) The State Bank shall, if so required, by
the Reserve Bank, act as agent of the Reserve Bank at all places in India where it has a branch 1*** and
where there is no branch of the banking department of the Reserve Bank, for--
(a) paying, receiving, collecting and remitting money, bullion and securities on behalf of any
Government in India; and
(b) undertaking and transacting any other business which the Reserve Bank may from time to
time entrust to it.
(2) The terms and conditions on which any such agency business shall be carried on by the State
Bank on behalf of the Reserve Bank shall be such as may be agreed upon.
(3) If no agreement can be reached on any matter referred to in sub-section (2) or if a dispute arises
between the State Bank and the Reserve Bank as to the interpretation of any agreement between them, the
matter shall be referred to the Central Government and the decision of the Central Government thereon
shall be final.
(4) The State Bank may transact any business or perform any functions entrusted to it under
sub-section (1) 2[by itself 3***] or through an agent approved by the Reserve Bank.
Notes:
1. The words “or where there is a branch of a subsidiary bank” omitted by Act 19 of 2018, s. 7 (w.e.f. 1-4-2017).
2. Subs. by Act 38 of 1954, s. 64 and the Third Schedule, for “either by itself” (w.e.f. 10-9-1959).
3. The words “or through a subsidiary bank” omitted by Act 19 of 2018, s. 7 (w.e.f. 1-4-2017).