The Deposit Insurance and Credit Guarantee Corporation Act, 1961
Administered Ministry: Ministry of Finance / Department of Financial Services
Section
Section 15A Cancellation of registration of an insured bank for non-payment of premium.
1[15A. Cancellation of registration of an insured bank for non-payment of premium.--(1) The Corporation may cancel the registration of an insured bank if it fails to pay the premium for three consecutive periods:
Provided that no such registration shall be cancelled except after giving to the concerned bank one month's notice in writing calling upon that bank to pay the amount in default.
(2) The Corporation may restore the registration of a bank whose registration has been cancelled under sub-section (1), if the concerned bank requests the Corporation to restore the registration and pays all the amounts due by way of premia from the date of default till the date of payment together with interest due thereon on the date of payment:
Provided that the Corporation shall not restore the registration unless it is satisfied, on an inspection of the concerned bank or otherwise, that it is eligible to be registered as an insured bank.]
Provided that no such registration shall be cancelled except after giving to the concerned bank one month's notice in writing calling upon that bank to pay the amount in default.
(2) The Corporation may restore the registration of a bank whose registration has been cancelled under sub-section (1), if the concerned bank requests the Corporation to restore the registration and pays all the amounts due by way of premia from the date of default till the date of payment together with interest due thereon on the date of payment:
Provided that the Corporation shall not restore the registration unless it is satisfied, on an inspection of the concerned bank or otherwise, that it is eligible to be registered as an insured bank.]
1. Ins. by Act 21 of 1978, s. 8 (w.e.f. 15-7-1978).
Section 16 Liability of Corporation in respect of insured deposits.
(1) Where an order for the winding up or liquidation of an insured bank is made, the Corporation shall, subject to the other provisions of this Act, be liable to pay to every depositor of that bank in accordance with the provisions of section 17 an amount equal to the amount due to him in respect of his deposit in that bank at the time when such order is made:
Provided that the liability of the corporation in respect of an insured bank referred to in clause (a) or clause (b) 1[of sub-section (1) of section 13] 2[or clause (a) or clause (b) of section 13C] shall be limited to the deposits as on the date of the cancellation of the registration:
Provided further that the total amount payable by the Corporation to any one depositer in respect of his deposit in that bank in the same capacity and in the same right shall not exceed one thousand and five hundred rupees:
Provided further that the Corporation may, from time to time, having regard to its financial position and to the interests of the banking system of the country as a whole, raise, with the previous approval of the Central Government, the aforesaid limit of one thousand and five hundred rupees.
(2) Where in respect of an insured bank a scheme of compromise or arrangement or of reconstruction or amalgamation has been sanctioned by any competent authority and the said scheme provides for each depositor being paid or credited with, on the date on which the scheme comes into force, an amount which is less than the original amount and also the specified amount, the Corporation shall be liable to pay every such depositor in accordance with, the provisions of section 18 an amount equivalent to the difference between the amount so paid or credited and the original amount, or the difference between the amount so paid or credited and the specified amount, whichever is less:
Provided that where any such scheme also provides that any payment made to a depositor before the coming into force of the scheme shall be reckoned towards the payment due to him under that scheme, then the scheme shall be deemed to have provided for that payment being made on the date of its coming into force.
(3) For the purposes of this section, the amount of a deposit shall be determined after deducting therefrom any ascertained sum of money which the insured banks may be legally entitled to claim by way of set off against the depositor in the same capacity and in the same right.
(4) In this section,--
(a) "original amount" in relation to a depositor means the total amount due by the insured bank immediately before the date of coming into force of the scheme of compromise or arrangement or, as the case may be, of reconstruction or amalgamation to the depositor in respect of his deposit in the bank in the same capacity and in the same right:
Provided that where under the proviso to sub-section (2), the scheme is deemed to have provided for any payment being made on the date of its coming into force the amount of such payment shall be included in calculating the original amount;
(b) "specified amount" means one thousand and five hundred rupees, or, as the case may be, the amount fixed by the Corporation under the third proviso to sub-section (1).
Provided that the liability of the corporation in respect of an insured bank referred to in clause (a) or clause (b) 1[of sub-section (1) of section 13] 2[or clause (a) or clause (b) of section 13C] shall be limited to the deposits as on the date of the cancellation of the registration:
Provided further that the total amount payable by the Corporation to any one depositer in respect of his deposit in that bank in the same capacity and in the same right shall not exceed one thousand and five hundred rupees:
Provided further that the Corporation may, from time to time, having regard to its financial position and to the interests of the banking system of the country as a whole, raise, with the previous approval of the Central Government, the aforesaid limit of one thousand and five hundred rupees.
(2) Where in respect of an insured bank a scheme of compromise or arrangement or of reconstruction or amalgamation has been sanctioned by any competent authority and the said scheme provides for each depositor being paid or credited with, on the date on which the scheme comes into force, an amount which is less than the original amount and also the specified amount, the Corporation shall be liable to pay every such depositor in accordance with, the provisions of section 18 an amount equivalent to the difference between the amount so paid or credited and the original amount, or the difference between the amount so paid or credited and the specified amount, whichever is less:
Provided that where any such scheme also provides that any payment made to a depositor before the coming into force of the scheme shall be reckoned towards the payment due to him under that scheme, then the scheme shall be deemed to have provided for that payment being made on the date of its coming into force.
(3) For the purposes of this section, the amount of a deposit shall be determined after deducting therefrom any ascertained sum of money which the insured banks may be legally entitled to claim by way of set off against the depositor in the same capacity and in the same right.
(4) In this section,--
(a) "original amount" in relation to a depositor means the total amount due by the insured bank immediately before the date of coming into force of the scheme of compromise or arrangement or, as the case may be, of reconstruction or amalgamation to the depositor in respect of his deposit in the bank in the same capacity and in the same right:
Provided that where under the proviso to sub-section (2), the scheme is deemed to have provided for any payment being made on the date of its coming into force the amount of such payment shall be included in calculating the original amount;
(b) "specified amount" means one thousand and five hundred rupees, or, as the case may be, the amount fixed by the Corporation under the third proviso to sub-section (1).
1. Subs. by Act 1 of 1984, s. 62, for "of section 13" (w.e.f. 19-7-1969).
2. Ins. by Act 56 of 1968, s. 10 (w.e.f. 1-7-1971).
2. Ins. by Act 56 of 1968, s. 10 (w.e.f. 1-7-1971).
Section 17 Manner of payment by Corporation in case of winding up of insured banks.
(1) Where an insured bank has been ordered to be wound up or to be taken into liquidation and a liquidator, by whatever name called, has been appointed in respect thereof, the liquidator shall, with the lest possible delay and in any case not later than three months from the date of his assuming charge of office, furnish to the Corporation a list in such form and manner as may be specified by the Corporation showing separately the deposits in respect of each depositor and the amounts of set off referred to in sub-section (3) of section 16.
(2) Before the expiry of two months from the receipt of such list from the liquidator the Corporation shall pay 1[the amount payable under section 16 in respect of the deposit of each depositor--
(a) directly to the depositor, or
(b) to the depositor through such agency as the Corporation may determine, or
(c) to the liquidator.]
2[(3) Where the Corporation pays under sub-section (2), any amount in respect of the deposit of a depositor to the liquidator, the liquidator shall pay or cause to be paid that amount to the depositor and any expenses incurred by the liquidator in making such payment shall be treated as expenses incurred in the winding up of the insured bank.]
(2) Before the expiry of two months from the receipt of such list from the liquidator the Corporation shall pay 1[the amount payable under section 16 in respect of the deposit of each depositor--
(a) directly to the depositor, or
(b) to the depositor through such agency as the Corporation may determine, or
(c) to the liquidator.]
2[(3) Where the Corporation pays under sub-section (2), any amount in respect of the deposit of a depositor to the liquidator, the liquidator shall pay or cause to be paid that amount to the depositor and any expenses incurred by the liquidator in making such payment shall be treated as expenses incurred in the winding up of the insured bank.]
1. Subs. by Act 56 of 1968, s. 11, for certain words (w.e.f 1-7-1971).
2. Ins. by s. 11, ibid. (w.e.f. 1-7-1971).
2. Ins. by s. 11, ibid. (w.e.f. 1-7-1971).
Section 18 Manner of payment by corporation in case of scheme of compromise or arrangement or of reconstruction or amalgamation in respect of an insured bank.
(1) Where a scheme of amalgamation of any insured bank with any other banking institution (hereinafter referred to as the transferee bank) or a scheme of compromise or arrangement or of reconstruction in respect of such bank has been sanctioned and the Corporation has become liable to pay to depositors of the insured bank under sub-section (2) of section 16, the transferee bank where the scheme is of amalgamation and the insured bank in any other case shall, with the least possible delay and in any case not later than three months from the date on which such scheme takes effect, furnish to the Corporation a list in such form and manner as may be specified by the Corporation and certified to be correct by the chief executive officer of the transferee bank or, as the case may be, of the insured bank showing separately deposits in respect of each depositor and the amounts of set off referred to in sub-section (3) of section 16 and also the amounts paid or credited or deemed to have been paid under the scheme.
(2) Before the expiry of two months from the receipt of such list, the Corporation shall pay the amount payable under section 16 either directly to the depositor or to the transferee bank or the insured bank for being credited in his account.
(2) Before the expiry of two months from the receipt of such list, the Corporation shall pay the amount payable under section 16 either directly to the depositor or to the transferee bank or the insured bank for being credited in his account.
Section 18A Liability of Corporation to make interim payment to depositors of insured bank.
1[18A. Liability of Corporation to make interim payment to depositors of insured bank.—(1) Where, in respect of an insured bank, —
(i) any direction is issued or any prohibition or order or scheme is made under any of the provisions of the Banking Regulation Act, 1949 (10 of 1949); and
(ii) such direction, prohibition, order or scheme provides for restrictions on depositors of such bank from accessing their deposits,
then, without prejudice to the provisions of sections 16 to 18, the Corporation shall, on the date on which such direction, prohibition, order or scheme takes effect, become liable to pay to every such depositor an amount equivalent to the amount payable by the Corporation to the depositor under section 16.
(2) A list showing the outstanding deposits of each depositor of the insured bank, as on the date on which the direction, prohibition, order or scheme referred to in sub-section (1) takes effect, shall be furnished by such insured bank within forty-five days of such date of effect, in such form and manner as may be specified by the Corporation and certified to be correct by the chief executive officer of the insured bank.
(3) The Corporation shall, within thirty days of the date of receipt of the list under sub-section (2), verify, through an online platform, to the extent possible, or in accordance with such procedure, as may be prescribed, the genuineness and authenticity of the claims made therein, and ascertain the willingness of each depositor to receive the amount due to him out of his deposit in the insured bank.
(4) Subject to the provisions of sub-section (7), the Corporation shall, before the expiry of fifteen days from the date of completion of the verification under sub-section (3), pay to the depositors who have affirmed their willingness thereunder, the amount payable under sub-section (1) either directly, or get it credited in the account of the depositors through the insured bank:
Provided that the total period of time between the date when the Corporation becomes liable to pay to the depositor and the date of payment to the depositor shall not, subject to the provisions of sub-section (7), exceed ninety days:
Provided further that any amount paid by the insured bank to the depositor during the period between the date on which the direction, prohibition, order or scheme referred to in sub-section (1) takes effect and the date of payment to the depositor, shall be appropriately reckoned by the insured bank before crediting such amount in depositor's account.
(5) Any amount paid by the Corporation under sub-section (4) in respect of a deposit shall, to the extent of the amount so paid, discharge the insured bank from its liability to the depositor in respect of that deposit, but the insured bank shall become liable to the Corporation in respect of the amount paid by the Corporation.
(6) Where, in respect of an insured bank, —
(i) any direction, prohibition, order or scheme under any of the provisions of the Banking Regulation Act, 1949 (10 of 1949) providing for suspension of business of the insured bank is already in force as on the date of commencement of the Deposit Insurance and Credit Guarantee Corporation (Amendment) Act, 2021; and
(ii) such direction, prohibition, order or scheme provides for restrictions on the amounts to be paid by the insured bank to each of its depositors,
then, notwithstanding anything contained in any other law for the time being in force, the Corporation shall, on and from the date of commencement of the Deposit Insurance and Credit Guarantee Corporation (Amendment) Act, 2021, become liable to pay to each depositor of such insured bank, an amount equivalent to the amount payable by the Corporation to the depositor under sub-section (1) of section 16, and the time limit specified in sub-sections (2) to (4) herein for such payment shall be computed from that date.
(7) Notwithstanding anything contained in sub-sections (1) to (6), in cases where, —
(a) the Reserve Bank finds it expedient in the interest of finalising a scheme of amalgamation of the insured bank with other banking institution or a scheme of compromise or arrangement or of reconstruction in respect of such insured bank, and communicates to the Corporation accordingly, the date on which the Corporation shall become liable to pay every depositor of such insured bank may further be extended by a period not exceeding ninety days;
(b) the restrictions on payment to depositors are removed by the Reserve Bank at any time before payment to depositors by the Corporation under sub-section (4), and the insured bank or the transferee bank is in a position to make payments to its depositors on demand without any restrictions, the Corporation shall not be liable to make payment to the depositors of such insured bank.
(i) any direction is issued or any prohibition or order or scheme is made under any of the provisions of the Banking Regulation Act, 1949 (10 of 1949); and
(ii) such direction, prohibition, order or scheme provides for restrictions on depositors of such bank from accessing their deposits,
then, without prejudice to the provisions of sections 16 to 18, the Corporation shall, on the date on which such direction, prohibition, order or scheme takes effect, become liable to pay to every such depositor an amount equivalent to the amount payable by the Corporation to the depositor under section 16.
(2) A list showing the outstanding deposits of each depositor of the insured bank, as on the date on which the direction, prohibition, order or scheme referred to in sub-section (1) takes effect, shall be furnished by such insured bank within forty-five days of such date of effect, in such form and manner as may be specified by the Corporation and certified to be correct by the chief executive officer of the insured bank.
(3) The Corporation shall, within thirty days of the date of receipt of the list under sub-section (2), verify, through an online platform, to the extent possible, or in accordance with such procedure, as may be prescribed, the genuineness and authenticity of the claims made therein, and ascertain the willingness of each depositor to receive the amount due to him out of his deposit in the insured bank.
(4) Subject to the provisions of sub-section (7), the Corporation shall, before the expiry of fifteen days from the date of completion of the verification under sub-section (3), pay to the depositors who have affirmed their willingness thereunder, the amount payable under sub-section (1) either directly, or get it credited in the account of the depositors through the insured bank:
Provided that the total period of time between the date when the Corporation becomes liable to pay to the depositor and the date of payment to the depositor shall not, subject to the provisions of sub-section (7), exceed ninety days:
Provided further that any amount paid by the insured bank to the depositor during the period between the date on which the direction, prohibition, order or scheme referred to in sub-section (1) takes effect and the date of payment to the depositor, shall be appropriately reckoned by the insured bank before crediting such amount in depositor's account.
(5) Any amount paid by the Corporation under sub-section (4) in respect of a deposit shall, to the extent of the amount so paid, discharge the insured bank from its liability to the depositor in respect of that deposit, but the insured bank shall become liable to the Corporation in respect of the amount paid by the Corporation.
(6) Where, in respect of an insured bank, —
(i) any direction, prohibition, order or scheme under any of the provisions of the Banking Regulation Act, 1949 (10 of 1949) providing for suspension of business of the insured bank is already in force as on the date of commencement of the Deposit Insurance and Credit Guarantee Corporation (Amendment) Act, 2021; and
(ii) such direction, prohibition, order or scheme provides for restrictions on the amounts to be paid by the insured bank to each of its depositors,
then, notwithstanding anything contained in any other law for the time being in force, the Corporation shall, on and from the date of commencement of the Deposit Insurance and Credit Guarantee Corporation (Amendment) Act, 2021, become liable to pay to each depositor of such insured bank, an amount equivalent to the amount payable by the Corporation to the depositor under sub-section (1) of section 16, and the time limit specified in sub-sections (2) to (4) herein for such payment shall be computed from that date.
(7) Notwithstanding anything contained in sub-sections (1) to (6), in cases where, —
(a) the Reserve Bank finds it expedient in the interest of finalising a scheme of amalgamation of the insured bank with other banking institution or a scheme of compromise or arrangement or of reconstruction in respect of such insured bank, and communicates to the Corporation accordingly, the date on which the Corporation shall become liable to pay every depositor of such insured bank may further be extended by a period not exceeding ninety days;
(b) the restrictions on payment to depositors are removed by the Reserve Bank at any time before payment to depositors by the Corporation under sub-section (4), and the insured bank or the transferee bank is in a position to make payments to its depositors on demand without any restrictions, the Corporation shall not be liable to make payment to the depositors of such insured bank.
1. Ins. by Act 30 of 2021, s. 4 (w.e.f. 1-9-2021).
Section 19 Discharge of the liability of Corporation.
Any amount paid by the Corporation under section 17 or section 18 1[or section 18A] in respect of a deposit shall, to the extent of the amount paid, discharge the Corporation from its liability in respect of that deposit.
1. Ins. by Act 30 of 2021, s. 5 (w.e.f. 1-9-2021).
Section 20 Provision for unpaid amounts.
Where any depositor to whom any payment is to be made in accordance with the provisions of section 17 or section 18 1[or section 18A] cannot be found or is not readily traceable, adequate provision shall be made by the Corporation for such payment and the amount of such provision shall be accounted for separately in its books.
1. Ins. by Act 30 of 2021,s. 6 (w.e.f. 1-9-2021).
Section 21 Repayment of the amount to corporation.
(1) Where any amount has been paid under section 17 or section 18 1[or section 18A] or any provision therefore has been made under section 20, the Corporation shall furnish to the liquidator or the insured bank or to the transferee bank, as the case may be, information as regards the amount so paid or provided for.
(2) On receipt of the information under sub-section (1), notwithstanding anything to the contrary contained in any other law for the time being in force,--
(a) the liquidator shall, within such time and in such manner as may be prescribed, repay to the Corporation out of the amount, if any, payable by him in respect of any deposit such sum or sums as make up the amount paid or provided for by the Corporation in respect of that deposit;
(b) the insured bank or as the case may be, the transferee bank shall, within such time and in such manner as may be prescribed, repay to the Corporation out of the amount, if any, to be paid or credited in respect of any deposit after the date of the coming into force of the scheme referred to in section 18, such sum or sums as make up the amount paid or provided for by the Corporation in respect of that deposit.
(2) On receipt of the information under sub-section (1), notwithstanding anything to the contrary contained in any other law for the time being in force,--
(a) the liquidator shall, within such time and in such manner as may be prescribed, repay to the Corporation out of the amount, if any, payable by him in respect of any deposit such sum or sums as make up the amount paid or provided for by the Corporation in respect of that deposit;
(b) the insured bank or as the case may be, the transferee bank shall, within such time and in such manner as may be prescribed, repay to the Corporation out of the amount, if any, to be paid or credited in respect of any deposit after the date of the coming into force of the scheme referred to in section 18, such sum or sums as make up the amount paid or provided for by the Corporation in respect of that deposit.
1. Ins. by Act 30 of 2021. s. 7 (w.e.f. 1-9-2021).
Section 21A Guaranteeing of credit facilities and indemnifying credit institutions.
1[21A. Guaranteeing of credit facilities and indemnifying credit institutions.--(1) The Corporation may guarantee credit facilities given by any credit institution and may also indemnify credit institutions in respect of credit facilities granted by them.
(2) The Board may, for the purpose of guaranteeing credit facilities granted by credit institutions or indemnifying credit institutions, frame one or more schemes in such form and in such manner and containing such provisions as the Board may, from time to time, deem fit.
(3) The Board may levy, on every credit institution availing itself of the guarantees or indemnities provided by the Corporation, a fee at such rate or rates as may, with the previous approval of the Reserve Bank, be notified by the Corporation to the credit institution from time to time and different rates may be notified for different categories of credit institutions, for different types of credit facilities, for different areas where the credit facilities are utilised, or for different categories of beneficiaries of the credit facilities.
Explanation.--"Credit facility" means any financial assistance, including a loan or advance, cash credit, overdraft, bills purchased or discounted, a term of instalment credit and any guarantee other than a performance guarantee, granted or issued in India by a credit institution at any of its offices in India.]
(2) The Board may, for the purpose of guaranteeing credit facilities granted by credit institutions or indemnifying credit institutions, frame one or more schemes in such form and in such manner and containing such provisions as the Board may, from time to time, deem fit.
(3) The Board may levy, on every credit institution availing itself of the guarantees or indemnities provided by the Corporation, a fee at such rate or rates as may, with the previous approval of the Reserve Bank, be notified by the Corporation to the credit institution from time to time and different rates may be notified for different categories of credit institutions, for different types of credit facilities, for different areas where the credit facilities are utilised, or for different categories of beneficiaries of the credit facilities.
Explanation.--"Credit facility" means any financial assistance, including a loan or advance, cash credit, overdraft, bills purchased or discounted, a term of instalment credit and any guarantee other than a performance guarantee, granted or issued in India by a credit institution at any of its offices in India.]
1. Ins. by Act 21 of 1978, s. 8 (w.e.f. 15-7-1978).
Section 21B Corporation to act as agent of Central Government.
1[21B. Corporation to act as agent of Central Government.--The Corporation may act as agent for the Central Government,--
(i) in guaranteeing the due performance by any small-scale industrial concern or other institution or undertaking or categories of institutions or undertakings approved by the Central Government in this behalf, of its, or their, obligations to any credit institution in respect of loans and advances made or other credit facilities provided to it, or them, by such credit institution, and
(ii) in making, as such agent, of payments in connection with such guarantee.]
(i) in guaranteeing the due performance by any small-scale industrial concern or other institution or undertaking or categories of institutions or undertakings approved by the Central Government in this behalf, of its, or their, obligations to any credit institution in respect of loans and advances made or other credit facilities provided to it, or them, by such credit institution, and
(ii) in making, as such agent, of payments in connection with such guarantee.]
1. Ins. by Act 21 of 1978, s. 8 (w.e.f. 15-7-1978).
Section 22 Funds of Corporation.
1[22. Funds of Corporation.--The Corporation shall maintain three funds, to be called, respectively, the Deposit Insurance Fund, the Credit Guarantee Fund and the General Fund.]
1. Subs. by s. 8, ibid., for section 22 (w.e.f. 15-7-1978).
Section 23 Deposit Insurance Fund.
(1) To the Deposit Insurance Fund shall be credited,--
(a) all amounts received by the Corporation as premium;
(b) all amount received by the Corporation under section 21;
(c) the amount advanced by the Reserve Bank under section 26;
(d) all amounts transferred to that Fund from the General Fund 1[or the Credit Guarantee Fund] under section 27; and
(e) all income arising from the investments made out of that Fund.
(2) The said Fund shall be applied--
(a) to make payments in respect of insured deposits;
(b) to meet liability in respect of an advance taken under section 26, 2***
(c) to meet liability in respect of the amounts referred to in clause (d) of sub-section (1) 3[;and]
1[(d) to meet the whole or any part of the liability on account of the depreciation in assets, contributions to staff superannuation and other funds or other expenses incurred or to be incurred by the Corporation, as may be decided by the Board.]
(a) all amounts received by the Corporation as premium;
(b) all amount received by the Corporation under section 21;
(c) the amount advanced by the Reserve Bank under section 26;
(d) all amounts transferred to that Fund from the General Fund 1[or the Credit Guarantee Fund] under section 27; and
(e) all income arising from the investments made out of that Fund.
(2) The said Fund shall be applied--
(a) to make payments in respect of insured deposits;
(b) to meet liability in respect of an advance taken under section 26, 2***
(c) to meet liability in respect of the amounts referred to in clause (d) of sub-section (1) 3[;and]
1[(d) to meet the whole or any part of the liability on account of the depreciation in assets, contributions to staff superannuation and other funds or other expenses incurred or to be incurred by the Corporation, as may be decided by the Board.]
1. Ins. by Act 21 of 1978, s. 8 (w.e.f. 15-7-1978).
2. The word “and” omitted by s. 8, ibid. (w.e.f. 15-7-1978).
3. Added by s. 8, ibid. (w.e.f. 15-7-1978).
2. The word “and” omitted by s. 8, ibid. (w.e.f. 15-7-1978).
3. Added by s. 8, ibid. (w.e.f. 15-7-1978).
Section 23A Credit Guarantee Fund.
1[23A. Credit Guarantee Fund.--(1) To the Credit Guarantee Fund shall be credited,--
(a) all amounts in the Reserve for unexpired Guarantee Risks maintained by the Credit Guarantee Corporation of India Limited, a company formed and registered under the Companies Act, 1956 (1 of 1956), and having its registered office at Bombay;
(b) all amounts received by the Corporation as fees for guarantees and indemnities taken over or given by it;
(c) all amounts received by the Corporation in respect of guarantees and indemnities taken over or given by it;
(d) all amounts transferred to that Fund from the Deposit Insurance Fund or the General Fund under section 27; and
(e) all income arising from the investments made out of that Fund.
(2) The said Fund shall be applied--
(a) to make payments in respect of guarantees and indemnities taken over or issued by the Corporation;
(b) to meet any liability in respect of the amount referred to in clause (d) of sub-section (1);
(c) to meet the whole or any part of the liability on account of depreciation in assets, contributions to staff superannuation and other funds, or other expenses incurred or to be incurred by the Corporation, as may be decided by the Board;]
(a) all amounts in the Reserve for unexpired Guarantee Risks maintained by the Credit Guarantee Corporation of India Limited, a company formed and registered under the Companies Act, 1956 (1 of 1956), and having its registered office at Bombay;
(b) all amounts received by the Corporation as fees for guarantees and indemnities taken over or given by it;
(c) all amounts received by the Corporation in respect of guarantees and indemnities taken over or given by it;
(d) all amounts transferred to that Fund from the Deposit Insurance Fund or the General Fund under section 27; and
(e) all income arising from the investments made out of that Fund.
(2) The said Fund shall be applied--
(a) to make payments in respect of guarantees and indemnities taken over or issued by the Corporation;
(b) to meet any liability in respect of the amount referred to in clause (d) of sub-section (1);
(c) to meet the whole or any part of the liability on account of depreciation in assets, contributions to staff superannuation and other funds, or other expenses incurred or to be incurred by the Corporation, as may be decided by the Board;]
1. Ins. by Act 21 of 1978, s. 8 (w.e.f. 15-7-1978).
Section 24 General Fund.
All receipts of the Corporation other than those referred to in sub-section (1) of section 23 1[or in sub-section (1) of section 23A] shall be credited to the General Fund and all payments by the Corporation other than those referred to in sub-section (2) 1[of section 23, or, as the case may be, sub-section (2) of section 23A] shall be made out of that Fund.
1. Ins. by Act 21 of 1978, s. 8 (w.e.f. 15-7-1978).
Section 25 Investment.
All moneys belonging to the Deposit Insurance Fund 1[or the Credit Guarantee Fund] or the General Fund which may not for the time being be required by the Corporation shall be invested in promissory notes, stock or securities of the Central Government and all other moneys shall be deposited with the Reserve Bank.
1. Ins. by Act 21 of 1978, s. 8 (w.e.f. 15-7-1978).
Section 25A Amount in one fund may be transferred to the other fund or may be utilised for other purposes.
1[25A. Amounts in one Fund may be transferred to the other Fund or may be utilised for other purposes.--Notwithstanding anything contained in this Act, the Board may--
(a) transfer any amount from the Deposit Insurance Fund to the Credit Guarantee Fund or from the Credit Guarantee fund to the Deposit Insurance Fund, or
(b) utilise any money standing to the credit of either of the said Funds, for such purposes as it may think fit, if it is satisfied that the balance in the Fund, after such transfer or utilisation, will be adequate to meet any probable claim on that Fund.]
(a) transfer any amount from the Deposit Insurance Fund to the Credit Guarantee Fund or from the Credit Guarantee fund to the Deposit Insurance Fund, or
(b) utilise any money standing to the credit of either of the said Funds, for such purposes as it may think fit, if it is satisfied that the balance in the Fund, after such transfer or utilisation, will be adequate to meet any probable claim on that Fund.]
1. Ins. by Act 21 of 1978, s. 8 (w.e.f. 15-7-1978).
Section 26 Advances by Reserve Bank.
(1) The Reserve Bank shall, from time to time, advance to the Corporation on a request by it such sum or sums as may be required by the Corporation for the purposes of the Deposit Insurance Fund 1[or the Credit Guarantee Fund]:
Provided that the total amount outstanding at any one time on account of such advances shall not exceed five crores of rupees.
(2) The terms and conditions of any advance under this section shall be such as may be determined by the Reserve Bank with the approval of the Central Government.
Provided that the total amount outstanding at any one time on account of such advances shall not exceed five crores of rupees.
(2) The terms and conditions of any advance under this section shall be such as may be determined by the Reserve Bank with the approval of the Central Government.
1. Ins. by Act 21 of 1978, s. 8 (w.e.f. 15-7-1978).
Section 27 Advances from General Fund to the Deposit Insurance Fund or Credit Guarantee Fund.
1[27. Advances From General Fund to the Deposit Insurance Fund or Credit Guarantee Fund.--If, at any time, the amount available in the Deposit Insurance Fund or the Credit Guarantee Fund is insufficient to meet the requirements of that Fund, the Corporation may transfer, on such terms and for such period as may be determined by the Board with the approval of the Reserve Bank, from any of the other two Funds, referred to in section 22, such amount as may be necessary to meet the requirements of the Deposit Insurance Fund or the Credit Guarantee Fund, as the case may be.]
1. Subs. by s. 8, ibid., for section 27 (w.e.f. 15-7-1978).
Section 28 Preparation of balance-sheet, etc., by corporation.
(1) The balance-sheet and accounts of the Corporation shall be prepared and maintained in such form and manner as may be prescribed.
(2) The Board shall cause the books and accounts of the Corporation to be balanced and closed as on the 31st day of December 1[or such other date in each year as the Central Government may, by notification in the Official Gazette, specify]:
2[Provided that with a view to facilitating the transition from one period of accounting to another period of accounting under this sub-section, the Central Government may, by order published in the Official Gazette, make such provision as it considers necessary or expedient for the balancing and closing of, or for other matters relating to, the books or accounts in respect of the concerned years.]
(2) The Board shall cause the books and accounts of the Corporation to be balanced and closed as on the 31st day of December 1[or such other date in each year as the Central Government may, by notification in the Official Gazette, specify]:
2[Provided that with a view to facilitating the transition from one period of accounting to another period of accounting under this sub-section, the Central Government may, by order published in the Official Gazette, make such provision as it considers necessary or expedient for the balancing and closing of, or for other matters relating to, the books or accounts in respect of the concerned years.]
1. Subs. by Act 66 of 1988, s. 25, for ", each year" (w.e.f. 30-12-1988).
2. Ins. by s. 25, ibid. (w.e.f. 30-12-1988).
2. Ins. by s. 25, ibid. (w.e.f. 30-12-1988).
Section 29 Audit.
(1) The affairs of the Corporation shall be audited by an auditor duly qualified to act as an auditor under sub-section (1) of section 226 of the Companies Act, 1956 (1 of 1956), who shall be appointed by the Board with the previous approval of the Reserve Bank and shall receive such remuneration from the Corporation as the Reserve Bank may fix.
(2) The auditor shall be supplied with a copy of the annual balance-sheet of the Corporation and it shall be his duty to examine it together with the accounts and vouchers relating thereto and he shall have a list delivered to him of all books kept by the Corporation and shall at all reasonable times have to the books, accounts and other documents of the Corporation and may, in relation to such accounts examine any director of the Board or any officer or employee of the Corporation.
(3) The auditor shall make a report to the Corporation upon the annual balance-sheet and accounts and in every such report he shall state whether in his opinion the balance-sheet is a full and fair balance-sheet containing all necessary particulars and properly drawn up so as to exhibit a true and correct view of the state of affairs of the Corporation and in case he had called for any explanation or information from the Board, whether it has been given and whether it is satisfactory.
(4) Without prejudice to anything contained in the preceding sub-sections, the Central Government may at any time appoint the Comptroller and Auditor-General of India to examine and report upon the accounts of the Corporation, and any expenditure incurred by him in connection with such examination and report shall be payable by the Corporation to the Comptroller and Auditor-General of India.
(2) The auditor shall be supplied with a copy of the annual balance-sheet of the Corporation and it shall be his duty to examine it together with the accounts and vouchers relating thereto and he shall have a list delivered to him of all books kept by the Corporation and shall at all reasonable times have to the books, accounts and other documents of the Corporation and may, in relation to such accounts examine any director of the Board or any officer or employee of the Corporation.
(3) The auditor shall make a report to the Corporation upon the annual balance-sheet and accounts and in every such report he shall state whether in his opinion the balance-sheet is a full and fair balance-sheet containing all necessary particulars and properly drawn up so as to exhibit a true and correct view of the state of affairs of the Corporation and in case he had called for any explanation or information from the Board, whether it has been given and whether it is satisfactory.
(4) Without prejudice to anything contained in the preceding sub-sections, the Central Government may at any time appoint the Comptroller and Auditor-General of India to examine and report upon the accounts of the Corporation, and any expenditure incurred by him in connection with such examination and report shall be payable by the Corporation to the Comptroller and Auditor-General of India.