Power to deposit and invest surplus fund

(1) It shall be lawful for the municipal council to deposit at interest with the Government savings bank, or with the sanction of the Government in any scheduled bank or a central co-operative bank in the State, approved by the Government any surplus funds in its hands which may not be required for current charges, and, with the like sanction to invest such funds in public securities in the name of the municipal council, and from time to time dispose of such securities as may be necessary. (2) All surplus funds over and above what may be required for current expenses shall, unless deposited or invested as provided for in sub-section (1) be deposited in the local Government treasury or such other place or invested in such security as may be sanctioned by the Government.