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Under section 21 the Central Government deposits its cash balances:
AFree of charge
BFree of expense
CFree of interest
DFree of income
Answer & Solution
Correct answer: C. Free of interest
1. The Government entrusts its banking to the Bank.
2. The terms are as may be agreed upon.
3. But the cash balances are deposited free of interest.
_Source: The Reserve Bank of India Act, 1934 (India Code)_
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