Mumbai, Dec 6 (UNI) The Reserve Bank of India (RBI) will manage the rupee public debt of union territory of Puducherry and act as the sole agent for investment of its funds.
RBI will also undertake the general banking business of the Government of Puducherry, which will be effective from December 17, the apex bank said today in a statement.
The agreement signed to this effect with the Government of Puducherry is pursuant to the Government of Union Territories Amendment Act, 2001. It aims to create a separate public account of a union territory, the release said.
The pact will also facilitate borrowing upon the security of the consolidated fund of the union territory, it added.