The Government of Andhra Pradesh has requested the banks to ensure that handling the finances of Govt of AP and the funds/ Institutions in VII, IX and X schedules are conducted as per the provisions of the AP reorganization Act,2014.
A circular issued by the Secretary to Govt ( Budget and IF) issued today said that the provisions of the Act are binding on both the Govts of AP and Telangana.
It said the direction of the Telangana Government that the Bankers should go through the Act and interpret those provisions and act accordingly , is farfetched.
The banks as per the statute have to act on the instructions of the officers of the body corporate who are authorised to issue instructions and they are not expected to take cognizance of any other instructions from anybody other than the person authorised to transact with the bank, the circular said.
The circular said that ‘ it needs no reiteration that all transactions relating to public finances must be conducted in accordance with the standard banking procedures and cannot be subjected to unilateral directives of Telangana govt.
All actions of the state of AP and its entities are and will continue to be governed by the provisions of the AP state Reorganization Act, 2014, where ever applicable. All actions taken by the bankers in response to the instructions given by the officers authorised by the entities (Funds/Institutions included in the VII,IX and X schedules of the AP Reorganization Act,2014) will be supported in full measure the Govt assured.
The circular further said that the Banks may refer to the Finance department of Govt of AP in case they require any information and clarification in this regard. (INN)