The RBI is the government’s banker who is solely in charge of All three fund types, namely:

1. Consolidated Fund
2. the public account and
3. the Contingency fund.

Naturally, for banking operations, it employs banking agencies and pays them fees. It operates in 29 cities throughout India.

Reserve Bank of India in Nagpur is where all of the funds for the state and government are put together at the end.

The Indian government and each state government in India each have their own consolidated funds.

Article 266 (1) of the Indian Constitution requires that revenues (direct and indirect taxes, money borrowed) and expenses (receipts from government loans), excluding exceptional items, be included in the consolidated fund.

The Comptroller and Auditor General of India check these funds and reports on how they’re being used to the right people in the right places.

The budget is divided into two categories of expenditure: those “charged” against the Consolidated Fund of India and those “made” from the Consolidated Fund of India.

Charged expenses aren’t voted on by Parliament, which means they can be talked about but not voted on. The other type of expenses must be voted on.