The Government of Andhra Pradesh has requested the banks to ensure that the handling of its finances and those of the funds / institutions in the VII, IX and X schedules were conducted as per the provisions of the AP Reorganization Act, 2014.
A circular issued today by the Secretary to the Government (Budget and IF) said that the provisions of the Act were binding on the governments of both AP and Telangana.
It said that the direction of the Telangana Government to the bankers to go through the Act and interpret the provisions for themselves and act accordingly, was farfetched.
The banks as per the statute needed to act upon the instructions of the officers of the body corporate who were authorised to issue instructions, and they were 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, "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 the unilateral directives of Telangana government."
"All actions of the State of AP and its entities are and will continue to be governed by the provisions of the AP Reorganization Act, 2014, wherever 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 government assured.
The circular further said that the banks could refer to the finance department of Government of AP in case they required any information or clarifications in this regard. (INN)