Why doesn't RBI act as Banker to the Jammu and Kashmir State Government.Also Why is it not possible for any individual to own property in Jammu and Kashmir???
Why such exceptions for the State of J&K???
Dear student,
The RBI does not act as a banker to the Jammu and Kashmir government. According to the Section 21A of the RBI Act 1934 the RBI enters an agreement with the state government for the purpose of transaction. In case of Jammu and Kashmir such agreement does not exists.
According to the Article 370 of the constitution a special status is granted to the state of Jammu and Kashmir. Accordingly, the parliament can interfere in only a few matters of the state. There is a separate constitution in the state of J&K. In the state of J&K the Right to Property is enjoyed by only the citizens of the state. The rest cannot buy any land or property in the state.
The RBI does not act as a banker to the Jammu and Kashmir government. According to the Section 21A of the RBI Act 1934 the RBI enters an agreement with the state government for the purpose of transaction. In case of Jammu and Kashmir such agreement does not exists.
According to the Article 370 of the constitution a special status is granted to the state of Jammu and Kashmir. Accordingly, the parliament can interfere in only a few matters of the state. There is a separate constitution in the state of J&K. In the state of J&K the Right to Property is enjoyed by only the citizens of the state. The rest cannot buy any land or property in the state.