With effect from the appointed day, the following amendments shall be made in the Reserve Bank of India Act, 1934 (2 of 1934), namely:―
(1) in section 2, in the proviso to clause (f), for the words "any Central co-operative society in that State to be a State co-operative bank", the words "any one or more co-operative societies carrying on business in that State to be a State co-operative bank or banks" shall be substituted.
(2) in section 20,―
(a) the words and letter "and the Governments of Part A States" shall be omitted;
(b) for the words "their accounts respectively", the words "its account" shall be substituted;
(c) for the words "their exchange", the words "its exchange" shall be substituted;
(d) after the words "public debt", the words "of the Union" shall be inserted;
(3) in section 21,―
(a) in sub-section (1),―
(i) the words "and the State Governments" wherever they occur, shall be omitted;
(ii) for the word "their", at both places where "it" occurs, the word its shall be substituted;
(iii) in the proviso, the words "or any State Government" shall be omitted, and for the word "they" the word "it" shall be substituted;
(b) in sub-section (2), the words "and each State Government" shall be omitted;
(c) for sub-section (4), the following sub-section shall be substituted, namely:―
"(4) Any agreement made under this section shall be laid, as soon as may be after it is made, before Parliament"; and
(d) sub-section (5), shall be omitted;
(4) in sub-section (1) of section 21-A, the word and letter "Part B" shall be omitted;
(5) after section 21-A, the following section shall be inserted, namely:―
21-B. Effect of agreements made between the Bank and certain States before the Ist November, 1956.―"(1) Any agreement made under section 21 or section 21-A between the Bank and the Government of a State specified in the Explanation below and in force immediately before the Ist day of November, 1956, shall, as from that day have effect as if it were an agreement made on that day under section 21-A between the Bank and the Government of the corresponding State subject to such modifications, if any, being of a character not affecting the general operation of the agreement, as may be agreed upon between the Bank and the Government of the corresponding State, or in default of such agreement, as may be made therein by order of the Central Government.
Explanation.―In this sub-section "corresponding State" means,―
(a) in relation to the agreement between the Bank and the State of Andhra, the State of Andhra Pradesh;
(b) in relation to the agreement between the Bank and any other Part A State as it existed before the Ist day of November, 1956, the State with the same name; and
(c) in relation to the agreement between the Bank and the Part B State of Mysore or Travancore-Cochin as it existed before the Ist day of November, 1956, the State of Mysore or Kerala respectively.
(2) Any agreement made under section 21-A between the Bank and the Government of the Part B State of Hyderabad, Madhya Bharat or Saurashtra shall be deemed to have terminated on the 31st day of October, 1956.".