The Government of India have enacted Andhra Pradesh Reorganisation Act 2014, for reorganizing the existing State of Andhra Pradesh into State of Andhra Pradesh and State of Telangana with effect from 2nd June, 2014. According to Section 44 of said Act, the Governor of existing state of Andhra Pradesh is authorised to incur expenditure from the consolidated fund of the State of Telengana for any period not exceeding six months beginning with appointed day, pending sanction of such expenditure by the Legislature of the State of Telagana.
2. Further, as per Section 49 of Andhra Pradesh Reorganisation Act 2014, “the total of the cash balances in all treasuries of the existing State of Andhra Pradesh and the credit balances of the existing State of Andhra Pradesh with the Reserve Bank of India, the State Bank of India or any other bank immediately before the appointed day shall be divided between the States of Andhra Pradesh and Telangana on the basis of population ratio”.
3. Government of India requested the Governor, Reserve Bank of India for opening of accounts for the New State of Telangana with the Reserve Bank of India and finalization of agreements between the Reserve Bank of India and the new State.
4. As per Treasury Rule 3 of Andhra Pradesh Treasury Code, Volume-I and Appendix-1 of Andhra Pradesh Treasury Code, Volume-II, there shall be an agreement between the Governor of the State concerned and Reserve Bank of India for opening of Government Account consisting of the Consolidate Fund, Contingency Fund and Public Account of the State.
5. Government, after careful consideration of the matter, hereby authorise Sri L. Premachandra Reddy, IAS., Secretary to Government (Budget & Institutional Finance), Finance Department, Government of Andhra Pradesh to enter into agreement on behalf of Governor, State of Telangana with Reserve Bank of India, Mumbai for opening of Government Account in favour of Governor, State Government of Telangana for carrying on the ordinary banking business as well as public debt under Section 21 A of the Reserve Bank of India Act 1934 with effect from 2nd June, 2014.
G.O.Ms.No. 87 Date: 24.04.2014.
1. A.P. Re-organization Act, 2014. (Act No.6 of 2014).
3. D.O.Lr.No.9(1)-B(S)/2014, dt:10.03.2014 of Secretary, Ministry of Finance, Department of Economic Affairs, Government of India, New Delhi, addressed to the Governor, Reserve Bank of India, Mumbai.
This will be the First Account in the Name of Telangana State.
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)