Power to deposit and invest surplus funds

It shall be lawful for the municipality to deposit at interest in any of the co-operative banks or scheduled banks as defined in section 2 of the Reserve Bank of India Act, 1934 (2 of 1934), or in a post office, any surplus funds which may not be required for current charges and to invest such funds in the securities of the Central Government and such other public securities as the State Government may specify in this behalf.