 bill no 94  of  2012 the education bank of india bill,  2012 byshri arjun meghwal, mp a billto provide for setting up of a bank for the purpose of advancing loans to the students for pursuing higher studiesbe it enacted by parliament in the sixty-third year of the republic of india as follows:—1 (1) this act may be called the education bank of india act, 2012short title and extent(2) it extends to the whole of india5definitions2 in this act, unless the context otherwise requires,—(a) 'bank' means the education bank of india established under section 3; (b) 'prescribed' means prescribed by rules made under this act; and (c) 'student' means a person who is pursuing any course of study,including any professional, vocational or research study, in any college or institution or universitysetting up of education bank of india3 (1) the central government shall set up a bank to be known as the"education bank of india" with its headquarter at new delhi and regional offices in every state and union territory(2) the central government shall set up a branch of the bank in every districtof the country54 (1) the bank shall be managed by a board of directors consisting of—board of directors(a) union minister of human resource- chairman;development(b) union minister of finance- member;10(c) education minister of each state- member;(d) three eminent educationists to be nominated- members;by the central government(e) chairman-cum-managing director of a- member; andnationalized bank to be nominated by the central government15(f ) secretary, union ministry of human resource- member-developmentsecretary(2) the term of office of the members of the board of directors appointed under clauses (d) and (e) of sub-section (1) shall be one year205 (1) the board of directors of the bank shall meet at such place and at suchtime as may be determined by the chairman to frame out policies of the bankmeetings of board of directors(2) the board of directors shall meet at least once in a calendar yearfunctions of the bank6 the bank shall advance loans to the students to meet the cost of theireducation25application for loan7 (1) an application for grant of loan shall be made to the concerned branch ofthe bank by the student(2) an application made under sub-section (1) shall be disposed of within onemonth from the date of its receipt8 (1) the loan shall be payable to every eligible student till he completes thecourse for which the loan was applied for30loans to be paid to colleges and institutions directly by the bank(2) the amount of loan shall be equal to the total cost of education which shallinclude course fees, study materials, hostel fees, if any, and any other related expenditure in connection with the education of the student35(3) the bank shall make the payment direct to the college or institution wherethe student, whose loans has been sanctioned, is pursuing his studieseligibility for loan9 (1) the following shall be eligible for seeking full amount of loan from thebank:—(a) students, whose parents cannot afford the cost of higher education and whose annual income from all sources is less than five lakh rupees; and(b) meritorious students40(2)  a  student, whose parents cannot afford the full cost of his higher education, shall also be eligible to secure a loan from the bank to the extent of the amount he falls short of10 (1) the loan shall be given to every eligible student without any security  orguarantee:terms and conditions of sanction and repayment of loanprovided that the bank may demand from the student such details and suchdocuments before sanctioning the loan as may be deemed fit5(2) the loan shall be recovered with simple interest at the rate of four per centper annum(3) the terms and conditions of repayment of the loan shall be such as may beprescribed:provided that a student shall start repaying the loan one year after he hassecured a job in such instalments as may be prescribed1011 (1) any student who wishes to take loan from the bank for research purposesshall apply to the regional office of the bank concernedloan forresearchpurposes(2) the regional office of the bank may, after necessary enquiry, sanction theloan15(3) the terms and conditions of sanction and repayment of such loan shall besuch as may be prescribedofficers and staff12 the central government shall appoint such number of officers and staff asmay be required for the efficient functioning of the bank13 all the branches of the bank shall be under the control and supervision ofthe regional office concerned20branches to function under the control of regional office14 any aggrieved student may represent to a regional office who shall, afterconsidering all aspects of the case, forward their recommendations to the headquarter of the bank and the decision of the headquarter shall be finalrepresentation to regional office by aggrieved students saving10 of 19492515 nothing in the banking regulation act, 1949, shall apply to the bankestablished under this actpower to make rules16 (1) the central government may, by notification in the official gazette, makerules for carrying out the purposes of this act3035(2) every rule made under this act shall be laid, as soon as may be after it ismade, before each house of parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both houses agree in making any modification in the rule or both the houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule statement of objects and reasonsmajority of the students in our country are not able to pursue higher education due to poor financial condition of their parents although, students are brilliant in their studies and want to pursue higher education, poverty comes in the way of their pursuitprofessional and technical colleges charge exorbitant fees for admission which the students cannot affordwith a view to encouraging poor students to continue their education, it is proposed to provide loans on easy terms to them which can be repaid after they secure jobsalthough several banks offer loans for continuing education, such schemes are not attractive and beyond the means of majority of the parents therefore, it is proposed to set up a bank exclusively for the purpose of assisting the students by providing them loans for continuing higher educationhence this billnew delhi;arjun meghwaljuly 30, 2012 financial memorandumclause 3 of the bill provides for setting up of education bank of india clause 4provides for nomination of three prominent educationists to the board of directors of the bank by the central government clause 12 provides for appointment of necessary number of officers and staff for the bankthe bill, therefore, if enacted, will involve expenditure from the consolidated fund of india it is estimated that an annual recurring expenditure of about rupees five hundred crore from consolidated fund of india will be involveda non-recurring expenditure to the tune of about one hundred crore is also likely to be involved memorandum  regarding  delegated  legislationclause 16 of the bill empowers the central government to make rules for carrying out the purposes of this bill as the rules will relate to matters of detail only, the delegation of legislation power is of a normal character————abillto provide for setting up of a bank for the purpose of advancing loans to the students for pursuing higher studies————(shri arjun meghwal, mp)mgipmrnd—2528ls—29082012