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.]
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 2
[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, 3***
(c) to meet liability in respect of the amounts referred to in clause (d) of sub-section (1)
4
[;and]
2
[(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.]
2
[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;
1. Subs. by Act 21 of 1978, s. 8, for section 22 (w.e.f. 15-7-1978).
2. Ins. by s. 8, ibid. (w.e.f. 15-7-1978).
3. The word “and” omitted by s. 8, ibid. (w.e.f. 15-7-1978).
4. Added by s. 8, ibid. (w.e.f. 15-7-1978).
18
(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;]
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.
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
[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.]
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.
2
[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.]
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 3
[or such other date in each year as the Central Government may, by
notification in the Official Gazette, specify]:
4
[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
1. Ins. by Act 21 of 1978, s. 8 (w.e.f. 15-7-1978).
2. Subs. by s. 8, ibid., for section 27 (w.e.f. 15-7-1978).
3. Subs. by Act 66 of 1988, s. 25, for “, each year” (w.e.f. 30-12-1988).
4. Ins. by s. 25, ibid. (w.e.f. 30-12-1988).
19
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.]
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.
1
[30. Income-tax—2
[(1)] Notwithstanding anything contained in the Indian Income-tax Act, 1961
(43 of 1961), the Corporation shall not be liable to pay any tax under that Act on any of its incoming
profits or gains for the accounting year during which the Corporation is established and for 3
[fourteen
accounting years following that year.]
4
[(2) Notwithstanding anything contained in the Income-tax Act, 1961 (43 of 1961), the Corporation
shall not be liable to pay any tax under that Act on any of its income, profits or gains for the period
commencing from the first day of January, 1977, and ending with the commencement of the accounting
year during which Chapter II of the Deposit Insurance Corporation (Amendment and Miscellaneous
Provisions) Act, 1978 (21 of 1978), comes into force and for four accounting years following that years.]
31. Reserve Fund.—After making provisions for all its liabilities and for all other matters for which
provision is necessary or expedient, including any contribution to the staff and super annuation funds, the
Corporation shall transfer the balance, if any, of its income in its General Fund to one or more reserve
funds to be utilised in such manner and for such purposes as the Corporation may deem fit.
32. Annual accounts and reports.—(1) The Corporation shall furnish to the Reserve Bank within
three months from the date on which its accounts are balanced and closed the balance-sheet and accounts
together with the auditor's report and a report of the working of the Corporation during the year and
copies of the said balance-sheet and accounts and reports shall be furnished by the Corporation to the
Central Government.
(2) The Central Government shall cause every auditor's report and report of the working of the
Corporation to be laid 5
[as soon as may be after they received before each House of Parliament 6***]