State Bank of India Act, 1955
32. State Bank to act as agent of the Reserve Bank
(1) The State Bank shall, if so required by the Reserve Bank act as a agent of the Reserve Bank at all places in India where it has a branch 82[or where there is a branch of a subsidiary Bank], and where there is no branch of the Banking department of the Reserve Bank, for-
(a) paying, receiving, collecting and remitting money, bullion and securities on behalf of any Government in India; and
(b) undertaking and transacting any other business which the Reserve Bank may from time to time entrust to it.
(2) The terms and conditions on which any such agency business shall be carried on by the State Bank on behalf on the Reserve Bank shall be such as may be agreed upon.
(3) If no agreement can be reached on any matter referred to in sub-section (2) or if a dispute arises between the State Bank and the Reserve Bank as to the interpretation of any agreement between them, the matter shall be referred to the Central Government and the decision of the Central Government thereon shall be final.
(4) The State Bank may transact any business of perform any functions entrusted to it under sub-section (1) 83[by itself or through a subsidiary Bank] or through an agent approved by the Reserve Bank.