RBI does not Transact the Business of which State Government?
Jammu and Kashmir
Reserve Bank of India (RBI) does not transact the Business of Jammu and Kashmir and Sikkim also. According to RBI act 1934 as per section 21 Act, RBI has the right to transact Government business of the Union in India.
State Government transactions are carried out by RBI in terms of the agreement entered into with the State Government in terms of section 21 A of the Act. As of now, such agreements exits between RBI and all the State Government except Jammu & Kashmir and Sikkim Government also.