tee deposit insurance corforation ( miscellaneous peovisions) bill, 19 1 - page 1 , in the l)ng title, -"tmdertak1ug" \ for ''unde-r-st and:1ng n_ -~ , 4, lines 12 2 i page and 13, -":lncon sisten t ti :for "in con s1 st an t it nad -1 (',-3 page 9, line after "or" insert "t!1e" 4  __ ,pag&-'9~ jine 47,-after "or" jz sert "a" , page 10, line 3,- (1) 'in sti t;l1 t,inyl '~rd'  ~ 04  _4~ 4  ~  -' ~ "and " "'~ -  ( i1) _rt s:uer~ 6 page 10, line 1 5, -after "or" insert ita" magha 28, 1899 saka)  2 1 fib !918 bill no it  the deposit insurance ~orporation (amendmen'p and miscellaneous provisions) bill, 1978 billto prooide fm the acquisition and transfer of the "uerstanding 01 the ct;  guan'iiiee ctwporation of india lwnited in ,eier to gen,e better ~ , med tor providing credit guarantee to commercial banks, and jur1mr  to amend the depoait ["""anee corporation act, 1961, and the re~, bank at india act, 1934, and for 'ltl4ttera oonnected tlwn'wita or tftcidental thereto j31 it enacted by parliament in the twenty-ninth year of the rt!publfc: of india as follows:- chapter iputnmlary ,",  :j1ii-~ $' 1 (1) this act may be aalled the deposit insurance cor,oratllon (amendment and miscellaneous provisions) act, 1978 (2) it shall come into force on such date as the central government auay, by notificatton in the official gazette, appoint, and difterent da1le8 may be appointed for difterent provisions of this act; and any reference 10 in ally provision to the commencement of this act shall be construed u a reference to the commencement of that provision z in this act, unless the context otherwise requires,-(4) "company" means the credit guarantee corporation of india deinl--linrlted, a company formed and registered under the companies act, uodi is 1956, and having its registered office at bombay; (b) "corporation" means the ~posi'i ii;;urance corporation establish~ tindel tub-section (1) of section 3 of the deposit insurance corporation act, 1961; (c) "re-named corporation" means the corporation as re-named in accordance with the provisions of seotion 4; (d) words ann expressions used in this act and not defined but defined in the deposit insurance corporation act, 1961 shall have the meanings respectively assigned to them in that act  chapter ii acquisition and transfer of undertaking of the credit guarantee corporation of india limited3 (1) on the commencement of this act the undertaking of the company shall stand transferred to and shall vest in the corporation undertakina of the company to yutin ucorporation (2) the undertaking of the company shall be deemed to include all assets, business rights powers authorities and privileges and all property is movable and immovable cash balances, reserve funds investments book debts and all other rights and interests in or arising out of such property as were, immediately before the commencement of this act in the ownersa ji88ms~, j p!lwer or control of the company, whether within ol""euiiiiie'  , ~ all books of account registers, records and all other 20 d~_ta of whatever nature relating thereto and shall also be deemed to i include all borrowings liabilities and obligations of whatever kind i then subsisting of the company in relation to its undertaking 4 (1) on the transfer to and vesting in the corporation of the undertaking of the company, such undertaking shall be deemed to have 25 idf111p4 with the unciertuidg of the corporatioa  and eonaequen1- ~ ld8i'gei' \iile coi'poi'8tioa sdaill be il'e-oamed 81 the- deposit ldiw:aace arli- -c'redlt gu8niltee coiporatioll, and thereupon lily f~ to the nt,ee  lneur8ftee col'poatkm or to the credit guu'ul_ corpqrmion meriel of the undertaklni of the company trlth the uddertak1da of the corporatioa ofl·i  lblltted in the deposit insurance col'potaiign act, 1861, or in 30 "of any other law for the time being in force or in any ~_ oj' gmler d'wp:awew in fqi'ce immediately before such transfer and vesting and ~ which either the deposit insurance corporation or the credit guatlan~ corporation of india limited is a party or which is in favour of eltbet of them shall be construed as a refler'ejlce to the deposit insurance and 35 credit guarantee corporation:~ '  ,'  if" >£ 'j",");'l'~ohad&e of name of the depoeit tns\u'an~e corpqratlon 1;iy  ;~ virtue of the prwisioes af iu \)section (l), shall not--', $ ' {a) aftqct aay right or obli~tion of that corporation, 8ubsi$ting ~tlely before the commeneement of the deposi~ insurance 40  c8llj1g1'8tion (amatklmeat and mi8cellaneoul provisions) act, 1978'l (bj tender defectfye any suit or other legal prooeegibg pen_, immediately before such commencement by or against thatco~ , ration in its former name; and " i " ,~c), ~ect the institution or commencement of any suit or other 4s lecal proceeding which could have been instituted or commenced, before such commencement by or against the corporation ift its , 'd ~ name, and ~ery aueh suit or legal proceeding may be tn  tvted or commenced, after the commencement gf this act, by or ;' : i again,tthe ~named corporation  ; ,  5 (n unless otherwise expreslly provided by this act, n cbealbett, general ejfect of merger 5 obligations anrt liabilities, nspeeti~ly, of the corporation, or tlie 0mwpany, and all contracts, deeds, bonds, agreements, guarantees, ~ndemni­:tte!, powers of attorney; grants of legal representation and other dilstru-'merits of 'wbateftr nature subsisting or having effeet immediately ~ the commencement of this act and to which either the corpora  ·'  10 th, company is a party 0; which are in favour of either the corporation or the i company shan be of as tull force ,and eff~ against or in f{lvour flf th,e re-named corporation, and may be enforced or acted upon as fd!,1y ant\ ~ectuany as if in place of the corporation or the cmnpany, d'the case may be, the re-named corporation had been a pariyfhereto j 5 or as if they had been issued in favour of the re-named coyt>otatron 'i i' "(2) 'if immediately before the commencement of this act, any suit, tq>~a~ or other proceeding of whatever nature, in rela,tion to any btia,mess of the undertaking of the corporation or of the comp!lny, inst1~ or preferred by or against the corporation or the company, is' pending, the 20 same shall not abate, be discontinued or be in any way prejudicially affect-~; 'b1 reason of the' ttansfer of the undertatiitg of the compilfty 'to the tbrpotation or the merger of the undertaking of the' compny wtfh the ~~king of the corpora~, or 01 anything eontained in tiua ' act; bat the &tiit, appeal or oth~ pto(teedirig may 'becoftunued, ~'nd'''' 25 forced by or against the re-named corporatioll;" ', '~h payment ot amount • (t') for the tnllsfer to; and lve!tttl1g in, the 'corpotatid, ''itader mcli';n'3, of the tmdertakin-g of the company, the~shau be ~wri by,'tiie corporation to the company an amount of rupees two crone " " (2) the amount specified in msection (l) shall be given, in cas~ 30 within thirty days from the commencement of this act and such amount shall 'carry tntnat at the il"ate of f011r per cent per aju:ulwl frem'>illch co~mencement till the date on which the amount is paid to the company:' provided that if the amoont specified in aub-seetion (h is ~wdthin seven days from the commencement of this act, no lnterestahal1 be 35 payable 7 (1) the centrlal government may, at any time after the commencement of this act authorise a person or body of persons to ,take over the management of the affairs of the company; and when any person or ~qdy of persons is so authorised, it shah be the duty of such pers()!l or 40 b~ty of pe,rsons to brin,~ the operations of the c,mpany to ~ close r~lise the amount pavable to the company under section 6 and distribute ~ atnount amonp,st the creditors of the comnanv in duf" comse ofa"minfj: tr~tton and, if there is a surp1us amonrr;t the contrib~tories oft'h~ companv 'in accordance with their rights and interests and after su~~ 45 realisation and i'\istribution to obtain an crder of the central government for the chssolution of the company powerot central government to authorise a person or body of persons to take over the manaaement ot the company (2, fbr the purposes of sub-s~c'tion (1) the person ot' bcidyof ~ authorised under that sub~section sh"n have such of the powers 'iild tluties of the ofticial liquidator, appo~ted under the companies act 1956, as -re necessary to give effect to the proveions of that sub-aection  if the company were being wound up by !he court and, for this purpose, the provisions of the companies act, 1956, shad apply subject to the modification that for the word "court", wherever it occurs, tlie , words "central government" shall be substituted (3) when any person or body of persons is authorised by the central government under sub-section (1), to take over the management of the aftairs of the company,-10 1 of 1901 '~ «i) the provisions of the companies act, 1956, or of any other law for the time being in force or any instrument having effect by virtue of any such act or other law shall, in so far as they are tneonsifltant with the provisions of this act, cease to apply to, or in relation to, the company; (b) all persons in charge of the management, including any i, person holding office as manager, director or secretary of the coptpany, immediately before the authorisation of such person or body of persons, shall be deemed to have vacated their offices, as such (4) as soon as the affairs of the company have been wholly wound up, the person or body of persons, authorised under sub-section (1) 20 lihnll submit his or their duly audited final accounts to the central gevemment ann shall apply to that government for orders as to the dissolution of the company (5) the central government shall, after hearing such person as it may think fit and upon perusing the accounts as audited if satisfied that 2, the affairs of the company have been whonv' wound up, make an order that the company be di!;so}ved from tne date of the order and the company shall stand dissolved accordingly (6) the central government may also make an or"er relating to-1 of 1958 (a) the application subject to the provisions of the companies 30 aet 1956, of the balance in the hands of the person or body of persons authorised un~r sub-section (1); or (b) the payment of such balance into the general revenue account of the central gov~ment; and (e) the disposal of the books and papers of the company 3' (7) a copy of the order made by thp central government for the di'lotution of the comoanv shall be filer! bv the ~re-named corporatlon with the re'dstrar of companies within thirtv days !rom the -date of sueh order and the ~strar of companies shall 'jlive effect to thp said efter a8 if it were an order made by the coul't for the 'dissolution of the 40 company " ,  -, ---'-- -- 1 of 19m (3) the provisions of this section shall have effect notwithstanding -~g to the contrary contained in tb~ companies act, 1956, or in any other law for the time being in force, i  chapter in ~ aml!ndml!!nts to mvdmposit insurance corporation act, 1961, ·8 on thej ~oll)lnedcement of this act, the deposit insurance corpo-,tioat ,act, 1961, shall have effect subject to the following amendments, s uiilejy:~ - (1) in the long title, after the words "in::lurance of deposita", the words "and guaranteeing of credit facilities""hall be inserted: amendmeot of the depoett insurance corporation act, 1981 (2) in secti,oil 1, in 8ub"section (1), tor the words ,"the deposit insurance corporation", the words "the deposit insur~ce and credit guarantee corporation~' shall be substituted; 10 (3) in section 2,-r , - , (i) in' clause (e), for the worda "the deposit insurance corporation", the wards "the deposit insurance and credit guarantee corporation" shall be substituted; (ii) after clause (ee), the following clause shall {,e inserted, namely:-- (eea) "credit institution" means all or any of the following, namely:-(i) a banking company; (ii) a coiitesponding new bank; 20 (iii) a regional rural'i)3ank; (tv) a co-operative bank; (v) a financial institution:': (iii) after clause (hh), the following clause shall be inserted, 2s namely:-- (hha) "financial institution" means any ilnancial insti-tution within the meaning of clause (c) of section 451 of the reserve bank of india act, 1934;'; (4) in section 3, after sub-section (1), the following sub-section 30 shall be inserted, namely:-35 "(la) any reference in this act to the deposit insurance corporation shall, on and fmm the date on which chapter ii of the deposit insurance corporation (amendment and mdcellaneous provisions) act, 1978, comes into force, be construed as a reference to the deposit insurance and credit guarantee corporation"; (5) in aection 4,-(i) in sub-section (1), for the words "five crores", the words "fifteen crores" shall be substituted; (ii) in sub-section (2), for the words "authorised capital''', the words "i8sued capital" shall de substituted; (6) in section 6, in auhlecuon (1) ,-{i) for clause (a), the followin& clause shall be substituted, namely:-,,'j "(g' the governor, for the time being, of tlae beierve j, ~ ~ >: bank or, if the resenoe bank, in pw'suaftqe ot the dec!leiob j of the committee of the central board of directors of  bank, nominates any deputy governor for the purpose, the deputy governor so nominated, who shad be the 'chairman of the board;"; (iij after clause (a), the following clause shall be inserted, 10 'ftame1y':-"(e) four rurectors, nominated by the central government in consultation with the reserve bank, having special knowledge or practical experience in respect of accountancy, ~tllz'e al'ld rural economy, banking, co-operation, is eegilemies, finance, jaw or small  cale industry «any other matter, the special kdowjedge of, and practical experience in which, is likely, ba the opinion 9f the central government, to be useful to the corpocration;"; (7) in section 15,-(i) in sub-section (1), for the woi'ds l'with the previous approval of the central government, be notified by the corporation in the official gazette from time to time: ", the words "with the prntous approval of the relerve bank, be notified by the corporation ftrom time to time, to the insured banks and 25 different rates may be notified for different categories of insured banks:" shall be subbtitated; (ii) in sub-section (i', fol' the words unot exceeding eight per cent per annum as may be prescribed", the words "not ejtcealtng eight per cent ov& and above the bank rate as may 30 be prescribed" shall be substituted; {8~ ·lifter section 15, the fe>llowing new sectiol'l shall be inserted, aamelyi-u15a (1) the corporation may cancel the registration of an insured bank if it fails to pay the premium for three consecutive 35 periods: provided that no such registration shall be cancelled except after giving to the :concerned bank ~ne month's n~tice in writing ~aamg upon that bank to pay the amount in def~\llt cancella_ tion of relistration of an insured bank for non-payment of premium  (2) the corporation may restore the registration of a bank 40 whole r~gistratlon has been cancelled under sub-section (1), if the concerned bank requests the col'poa'ation to restore the registration and pays all the amounts due by way of premia trom the date of default till the date of payment rogether with interest due thereon on the date of payment: provided that the corporation shall not restore the registration unless it is satisfied, 01'\ qh'inspection of the concerned bank or otherwise that it is eligible frt be registered as an insured bank"; (9) after chapter iii, -tlie following chapter aii~ be inserted, namely:-i'  'cffapter iii-a credit guarantee functionss 21a (1) the corporation may guarantee credit facilities giwll by any eredit institution cci may also indemnify 'creclit institutions in respect of credit facilities gnna;ed ~ them 10 guaranteein, of credit faciutiea and iademnitying credit institutions (j) tim board may, for the purpose of gum'anteeing credit taewtia 81"anted b-y credit institutions or inciemnifying credit instiiu-tions, frame o1'1e ol' more semmes in siw& form and in such manner and containing such provisions as tllm! board may, from time to time, deem fit is 20 (3) the board may l~y, on every credit institatiod availin, itself of the guarantees or indemnities provif\ed by tu c~ ration, a fee at such rate or rates as may, with the previous apfiroval of the reserve bank, be notified by the- corporation to the <;redit institutions from time to time and ditferent rates may be notified for different categories of crooit, institutions, for different types of credit facilities, for different areas where the credit facilities are utilised, or for different cate&ories of beneficiaries of the credit facilities b%planation-'·credit facility" means any financial assistance, incluciing a loan or advance, cash credit, overdraft, buls pw'chaaqd qi' discounted, a term of w\almelilt credit and any quaramee other than a periafmance guarantee, gtanmd or issued in india by a credit institution at any of its offices in india 2'lb the corporation may act as agent for the central government, corpora tion to act as alent of central government (i) in guaranteeing the due performance by any smallscale industrial concern or other institution or undertaking or categories of institutions or undertakillgi appn>ved by the central government in this behalf, of its, or their, obligations to aay credit institution in respect of loans ann advances mad or other credit facilities provided to it, or them, by aw:b credit institution and 35 fii) in making, as such agent, of payments in connection with such guarantee ' ; (10) for section 22, the following section shall be subsututed, namely:-"22 the corporation shall maintain three fwlda, to be called, funds ot respectively, the deposit insurance fund, the credit guarantee cor-fund and the general fund"; poration (11) in section 23-(i) in sub-section (1), in clause (d), after the worc\s ''general jl'upld", tbe words "or the credit guarantee fund" shall be inserted; '(if) in sub-section (2) ,-i (a) in clause (p), the word '~and", occurring at the ejl~ shan be omitted; ii (b) in clause (c), the word "jand" shall be added at the end\ (c) after clause (c), the following claule ahall ~  ,inserte«l, namely: -i ,~-t ' i , ' ; ie <d) to meet the whole or any part of the liabilityl on account of the depr-eciation in assets, eontributions l; ~ , l to ,staff superannuation and other funds_or other expenae'l incurred or to be incurred by the corporation as mayi be decided by the board,"; ii (ui) ,after section 23, the following new section i1ialj be inserted, zaamel,;-i'':; '~23a (1) to the credit guarantee fund shall be credited,-credit quarao teel'und (a) all amounts in the reserve foil' unexpired guarantee risks maintainen by the credit guarantee corporation of i india limited, a company formed and registered under the i companies act, 1956, and having its registered office at bom- i bay; i (b) all amounts received by the c()rporation as fees for i , iu&l'antees and indemnities taken over or given by it; i {e) all amounts receiven by the corporation in respect ii of guarantees and indemnities taken over or given by it; i i (d) all amounts transferred to that fund trom tlie i deposit insurance fund or the general fund under section ~ ~'and ' i  , i - ! ~ ~, (e) all income arising from the investments made out of ii that ji'pnd i "  (2') the said fund shall be applied-ii  ;, (a) to make payments in respect of guarantees and 3~1 !jldemnities taken over or issued by the cor~a~on; i i (b) to meet any liability in (['espect of the amount refer-i rec\, ,to in clause (d) of sub-section (1),; and ii (c) to meet the whole or any part of the liability on i account of depreciation in assets, contributions, tq ~ and 3~ superannuation and other funds, or other expensesinc\11'i'ed i or to be incurred by the corporation, as may be decided by i the b08i1'd"· i 'j  '  i (13) 'in section 24,-i i (i) after the words and figures "of section 23", the words, ~ brackets, figures and letter "or in sub-section (1) of section 23a" i shall be inserted; and   '1 1\ : (ii) for the words "of that section", the worda,' ft~s, 'brae-i ke1:s and letter "of section 23, or, as the case may i!llu~section _\ (2) of section 23a" shall be substituted; ti4) in section 25, att~r the words "deposit insuirance fund;', the words "or the credit guarantee fund" shall be ftlserted; (15) after section 25, the following new section shall be inserted, namely:-5 "25a notwithstanding anything contained in this act, the board may-10 amounts in one fund may be trall~ terred to the other fund or may be utilised tor othel purposes (a) transfer any amount from the deposit insurance fund to the credit guarantee fund or from the credit guarantee fund to the deposit insurance funcl, or (b) utilise any money standing to t1)e credit of either - of the said funds, for such purposes as it may think fit, if it fa satisfied that the balance in the fund, after such transfer or utilization, will be adequate to meet any probable claim on that fund"; (16) in section 26, in sub-section (1), after the words "deposit inslm'ance fund", the words "or credit guarantee fund" shall he inserted; (1 n for section 27, the following section shall bti substituted, namely:-20 25 advances from general fund to the deposit insurance fund or credit guarantee fund  "27 if, at any time, the amount available in the deposit insurance funci 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 baud 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"; (18) section 30 shall be re-numbered as sub-section (1) thereof, and after sub-section (1) as so re-numbered, the following subsection shall be inserted, namely:-30 ~3~1~1' 3s ,i "(2) notwithstanding anything containec\ in the income-tax act, 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, 1m, and end· ing with the commencement of the accounting yeafl during which chapler u of the deposit insll4'ance corporation (amendment and miscellaneous provisions) act, 1978, comes into force and for four accountihg years following that year·'; (19) in section 34, in sub-section (1),-'('i) ilfterthe words "an insured bank", the words "or a credit 40 ' insti~ution" shall be inserted; and "(ii) after the worcis "deposits in that bank", the wards "or the credit facilities granted by that credit institution, as the case may be," shall be inserted; 4s (20) in section 35,-(i) in sub-section (1), after the words "insured bank", the words "or credit institution" shall be inserted; and tu) 'iii' sub-~ction ' (2) ,_ , ' , " ' (a) after the words "insured bank", the words "or ibredft institution shall be inserted; (b) after the worfls "the bank", the words "or the credit institution" shall be inserted; s , (21) in section 36,-(i) in sub-section (1), after the word& "insured bank''', the words "or a credit institution" shall be il'1serted~ (ii) in sub-section (3), for the words "neither the bank inspected or investigated nor any other banlt", the words uneither 10 the bank nor the credit institution as the case may be, inspected 6r'fnvestigated, nor any other bank 011' credit institution" shall be ~bstituied; (22) in section 38, after the words "instiren bank", the wotds "or credit institution" sliall be inserted: 15 (23) section 39 shall be re-numbered as sub-section (1) of that section, and after sub-section (1), as so re-numbered, the fouowing sub-section shall be inserted, namely:-"(2) the corporation shall observe, except as otherwise required by law, the practices and usages customary among the 20 bankers, and, in particular, it shall not divulge any information relating to an insured bank or its customers or a credit institution or its customers except in cn-cumstances in which it is,in accordance with law or practices or usages customary among bankera, necessary or appropriate for the corporation to divulge such 2s information" ; (24) for section 49, the following section shan be substituted, namely:-"49 (1) notwithstanding anything contained in the code of criminal procedure, 1973, no court shall take cognizance of any 30 2 of offence punishable under this act except upon a complaint, in ccgnizance and trial of offences writin~, m~de by an officer of the corporation, generally or spedally authorised in writing in this behauby the board, and no -court, inferior 'to the court of a metropolitan magistrate or a judic:jal magistrate of the first class, shall try any such offence 3s (2) notwithstanding anything contained in the code of 2 of criminal procedure, 1973, a magistrate may, if he sees reason 90 to do, dispense with the personal attendance of the oiticer of the coii'poration filing ~he complaint, but the magistrate may, fn his discretion, at any stage of the proceedings, iurect the personal 40 attendance of the complainant"; : i· (,25) in the first schedul~, for the words "peposit insurance corporation", wherever they occur, the words "nepoit insurance and credit guarantee corporationu shall be substituted chapter iv' ,~ , , '  amendment to the reserve bank of india a~ 1~34 , 9 in the reserve bank of india act, 1934, in section 17, in clause (lla) , sub-clause (a) shall be omitted amendment of act 2 of 1934  statement of objects and reasonsthe deposit insurance corporation, a corporation established under the dtw~t insurance corporation act, 1961, transacts the business of insuring deposits with banks the credit guarantee corporation of india ltd, a company registered under the companies act, 1956, trans~cts the business of guaranteeing and indemnifying of loans and advances granted by 'ule commereial banks, co-operative banks and other financial in1;ti· tutions the objectives of the two corporations are cognate in that both seek to protect banks and depositors the resources of the deposit insurance - corporation are relatively larger as compared to the risk carried by i~ the credit guarantee corporation of india ltd have relatively smither resources it' is considered advantageous to tran~fer the undertaking of the credit guarantee ,corporation of india ltd to the deposit insuranc:e corporation which will be renamed as the deposit insurance and credit guarantee corporation the bill seeks to provide tor the acquisition by and transfer to the deposit insurance corporation of the undertaking of the credit gu~antee p,o~ration of ·lndia ltd 2 opportunity has also been taken to inc1urie certain amendments to th~ ,p,~~ ln~~,nc~ cor,por,atwn act, 1961~" which ~ considered necessary in the light of experience gained in t~e adiij,iriistratiod of the act new 1>zlhi; h m patel; r,e l5t~p~~em~r, 1977  ,'! '1  president's recommendation under articles 117 and , 274 of the constitution of'india,fcepy of letter no f 6/9/74-bo 1(1), dated the 9th february, 1978 fr~ sbri lj m patel minister of finance to the secretary, lok sabha] the president having been informed of the subject matter of the proposed deposit insurance corporation (amendment and miscellaneous provisions) bill, 1978 recommends under article 117(1) read with article 274(1) of the constitution of india the introduction of the bill in the budget session of lok sabha  annexure extracts from me deposit insurance corporation a&r, 1961 (47 of 1961)an act to provide for the establishment of a corporation for the purppse of insurance of deposits and {or other matters connected therewiijl or incidental thereto - - - - - - - - - - short 1 (1) this act may be called the deposit insutance corporation act, title, 1961 :l extent and com mence· ment deflnition • capital of corporation i in this ad, unless the context otherwise requires,-- - - - - (e) "corporation" means the deposit insurance corporation established under section 3; - - - - - 4 (1) the authorised capital of the corporation shall be one crore of rupees but the central government may, in consultation with the reserve bank, increase such capital from time to time, so however that the total authorised capital shall not exceed five crores of rupees (2) the authorised capital for the time being of the corporation shall be fully paid-up and shall stand allotted to the reserve bank - - - - - board of 6 (1) the board of dijrectors of the corporation shall consist of the tlirectors following, namely:-(a) the governor for the time being of the reserve bank, who shall be the chairman of the board; - - - - - premium 15 (1) every insured bank shall, so 10n'lt as it continues to be registered, be liable to pay a premium to the corporation on ito; deposits at such rate or utes as may, with the previous apprr'lval of the central government be notified by the corporation in the official gazette from time to time:~'  provided that the prpmium payable by  any insured bank fol' any period shall not e'x('eed fifteen nave paise ner andum for every hundred rupees (if thl' total amount of thp denosits itl th~t hlmk at the pnd tlf that period or where its tp(!istration has b~n c'lnc'i;'l1pd during that period on the date of its cancellation: provided further that where thp re(!i'ltrahnn of flnv insu~ bank i'l cancelled under section 13 or under section 13c such cancellation shall not aifect the liability of that b!nk for payment of premium for the period before such cancellation' and of any interest due under the provi~ !dons of this section - - - - ' (3) if an insured bank makes any default in payment ef any amount of premium, it shall, for the perioc\ of such default, be liable to pay to the corporation interest on such amount at such a:ate not exceeding eight per cent per annum as may be prescribed - - - - - 3'4 the corporation shall maintain two funds to be called rellpectively the deposit insurance fund and the general fund funds of corporation deposit insurance fund 23 (1) to the deposit insurance fund shall be credited,-- - - - - (d) all amounts transferred to that fund from the general fund under section 27; and - - -   (2) the said fund shall be applled-- - - - - - (b) to meet liability in ~spect of an advance taken under section 26; and i - (c) to meet uabillty in respect of the amounts referred to in clause (d) of sub-section (1) -general fund k all receipts of the corporation other tlian those referred to in sub-section (1) of section 23 shan be credited to the general fund and all payments bv the corporation other than tnose referred to in subsection (2) of that section shah be made out of that fund invest_ ment 25 all moneys belon~inr' to the deposlt insurance fund or the general fund which may not for the time bein~ be required by the corporation shall be invested in promissorv notes stock or securitiefl of the central government and all other moneys ~h!\lj be depos:ted with the reserve bank 26 (1) the reserve bank shall from time to time advance to the corporation on a request bv it such sum 0" sums $\"1 mav be reauired by the corporation for tlie purposes of the depl"isit insurance fund: advances by reserve bank provided that the total amount outstanding lit anv one time on account of such advances shall not exceed flve crores of rupees  - - - - - n if at any time the amount available in the deposit insurance fund advance is insufficient to meet tne reauirements of that fund the corporation from may transfer from the general fund such amount as ~y be necessary general to meet the requirements of the deoosit insurance fund on such terms ~~;:lito and for such period as may be determined by the board with the approval insurance of the reserve bank - fund  - - - - - returns from insured banks j4 (1) jiotwithsundidg anytltij1g~tained in ;the banking regulatien act 1949, or any other law f&r t8e time' being in force the corporation ma~ at any time direct an insured ban~ to f~ish to it, withib such time as may be specified by the corporation, such statements and ipfp,r,~tion relahpg to the ci~~i\s in thjt bank as the corj>qt~u()~ fllay capsider llecc$si¥1'y, or ell;pedieut to obtain fpr ,the pur~ses of thl~act     ' 35 (1) the corporation shall bave free access to all such records of an insured bank perusal whereof may ~ppear to th~ corporation ~9, be ~essary for 'the discharge of its functions under this act corporation to have acc4lf,ji tq recor~ (2) the corporation may require any insured bank to furnish to it copies of any ()f the recorp~ reierrwd 1<> 4l sub-sectiopo (,1) aiild ~he llank shall ~ bound to comply with the requisition inspection of insured banks by reserve bank ,  (1) the corporation may for any of the purposes of' ithis act request the reserve bank to cause an inspection of the books arrd aceounts or an investigation of the affairs of an insured bank to be made and on such request the reserve bank shllll ~ause f $ucb insp~tiqn oil' j~stl­gation ,to be made l:?y one or mor~ of its omcers or through such other person or agency as the reserve bank may determine  - - - -  ($)  wh~ jln ijl1m~ction of iqve&t~gatiqn has beau m4lde ~4er this section, the reserve bank shall furnish a f!ppy pi its ·r~port ~ the c~rp0-ration and neither the bank inspected or investigated nor any other bank shan ,be entmled to be furbished with a copty of such repol't   ' - - - - 2 of 1934 10 of 1949 reserve bank to furnilh information to corporation, 38 the reserve bank !!thall, on a request in writing from the corporation, fwmish to it any report or infor~atjon relating to an insurerl bank m~oe qr obtained bv it under or in pursuance of' the reserve bank' of india j\ct, 1934 or t~e banking regulation a,ct, 1949  , •• - - - cognizance of offences 48 no court shall take co~izance of any (\offence punishable 'under tais act ~pt, upgr aeomjllaint in writinc made by an officer of the corporation gellerally or specially authorised in writmll ill lhis behalf 1>,,, the board and no court inferior to that of a drssidency ma,l{istrate or 'a magistrate of the first class shall try anv such offence , "    - - - - -  the first schedule (see section 39) declaration of fidelity and sectecyi doherebv declare that i will faithfuliv trulv and to the 'best of my skul anc! abil1tv execute and perform 'the dutler requirpd of me all dire~­tor, auditor'offtcer or other employee (as the ease mav be) of the 'deposit insurance corporation and which properly relate to the 'offlce or position held by· me in the said corporation'" -' i further declare that i will not communicate or allow to be communicatefl to any person not legally entitled thereto any information relating to the affairs of the deposit insurance corporation oil' to the affairs of any person having any dealing with the said corporation; nor will i allow any such person to inspect or have access to any books orq~u­ments belonging to or in the possession of the deposit insurance corporation and relating to the business of the said corporation or the business of any person having any dealing with the said corporation signed before me: (signature) extracf from the reserve bank of india act, 1934 (2 of 1934) - - - - business whlch the bank rna)' transact 1'1 the bank shall be authorised to carry on and transact the several kinds of business hereinafter specified, namely:-- - - - - (lla) the acting as agent for the central government,-(a) in guaranteeing the due performance by any small-scale industrial concern, approved by the central government, of its obligations to any bank or other financial institution in respect of loans and aclvances made, or other credit facilities provided, to it by such bank or other financial institution and the making as such agent of payments in connection with such guarantee, and - - - - -  a billto provide for the acquisition and transfer of the undertaking of the credit guarantee corporation of india limited in order to serve better the need for providing credit guarantee to c(j"rillnercial banks, and further to amend the deposit insurance corporation act, 1961, and the reserve bank of india act, 1934, and for matters connected therewith' or incidental thereto (shri h m patel, ministe,- of finance)  -,  ~-