The Andhra Pradesh Government has requested the banks to ensure that handling the finances of Government of AP and the funds of Institutions in VII, IX and X schedules are conducted as per the provisions of the AP Reorganisation Act, 2014.
A circular issued by the Secretary to Government (Budget) issued today said that the provisions of the Act are binding on both the Governments 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 circular said.
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 “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 Government.”
All actions of the State of AP and its entities are and will continue to be governed by the provisions of the AP State Reorganisation Act, 2014, where ever applicable. All actions taken by the bankers in response to the instructions given by the officers authorised by the entities will be supported in full measure the Government assured.
The circular further said that the Banks may refer to the AP Finance Department in case they require any information and clarification in this regard.