Mumbai: The Reserve Bank of India (RBI) would carry on general banking business and manage public debt of the newly-formed state Telangana from June 2.
The central bank and the state have signed an agreement in this regard.
"Under the agreement, which shall be effective from June 2, 2014, the Reserve Bank of India shall carry on the general banking business of the Government of Telangana, manage its rupee public debt and act as the sole agent for investment of Government`s funds," RBI said in a release today.
The agreement is pursuant to the Andhra Pradesh Reorganisation Act, 2014.
The Andhra Pradesh Reorganisation Bill 2014, which got Parliament`s approval on February 20, got the Presidential assent in March and paved the way for creation of 29th state by splitting Andhra Pradesh.
There will be 13 districts in residuary Andhra Pradesh while Telangana will have 10 districts, including Hyderabad city.