 biu no 79 of i'" the international monetary fund and bank (amendment) bill, 1969 a billfurther to amend the international monetary fund and bank act, 1945 be it enacted by parliament in the twentieth year of the republic of india as follows:-1 (1) this act may be called the international monetary fund and bank (amendment) act, 1969 short title &ad commencement 5 (2) it shall come into force on such date as the central government may, by notification in the oftlcial gazette, appoint z in section 2 of the international monetary fund and bank act, 1945 (hereinafter referred to as the principal act), in sub-section (1) ,-amendment of section 2 (a) for the words "there shall be paid out of the consoudated fund of india" the words "there shall be paid, after due appropriation made hy parliament by law in this behalf, out of the consolidated fadd of india" shad be substituted; (b) in clause (c), after'the words and figures "under section 8 of article v", the words and figures ", or under seetion 2, section 3 or section 5 of article xxvi," shall be inserted; (c) after dause (d), the followt  elause shall be idaerteti,  1,:-"(del) any assessments required to be paid by the ctral govel'djllent to the intematioaal fund under section , or seetlon 5 of article xxvi of the fund alp'eement;" 3 after section 3 of the principal act, the following section shall be inserted, namely:-insertion of new lecticm 3a "3a the reserve bank may, on behalf of the central government, use, receive, acquire, hold, transfer or operate the spceial drawing riahts of that government in the international fund and j 0 perform all acts suppl@mental or incidental thereto" reserve bank to use, receive, acquire, etc, specia~ drawing richts on bebaj1 of central government the international monetary fund and the international bank for reconstruction and development were brought into existence through an international agreement concluded at the un monetary and financial conference held in 1945, and india became one of the original members of the,c;e institutions by signing the respective articles of agreement an ordinance called "the international monetary fund and bank ordinance, 1945", was promulgated in december, 1945, to implement the agreements under which these two institutions were established in 1959, the board of governors of the international bank decided on an increase in the authorised capital stock of the bank and a general 100 per cent increase in the subscriptions cf all member countries since the ordinuce did not authorise payment in respect of increase in our subscription on account of increase in the authorised capital stock of the bank, it became necessary to amend the ordinance and provide for such authority the ordinance was accordingly amended and at the same time converted into the international monetary fund and bank act, 1945 2 the board of governors of the international monetary fund have now approved certain amendments to the articles of agreement of the fund providing inter alia for the establishment of a facility based on the special drawing rights scheme to meet the need, as and when it arises, for a supplement to the existing monetary reserve assets with the establishment of the special drawing rights scheme it will be open to members of the fund to participate in the scheme participants in the scheme will, when it is activated be entitled to allocation of special drawing rights which could be used 8s a supplement to the foreign monetary reserve auets of the member, in accordance with the provisions in the articles in this connection certain charges for the use of special drawing rights and assessments to meet the expenses of working the scheme would become payable by participating members 3 the existing provisions of the international monetary fund and bank act, 1945, which provide for the payment of charges under the nonnal operations of the fund will need amendment to provide for the payment of charges or assessments in connection with the special drawing rights scheme it is also necessary to empower the reserve bank of india to act on behalf of the government in regard to this scheme hence the bill seeks to amend the international monetary fund and bank act, 1945, to provide for the payment of charges and arsessments in connection with the special drawing rights scheme and also to empower the reserve bank of india to act as designated authority on behalf of the government to receive, acquire, hold, tranct and operate special drawing rights and to perform all acts incidental thereto new delhi; the 23rd august, 1969 p c sethi clause 2 of the bill seeks to amend section 2 of the international monetary fund and bank act, 1945, with the object of enabling the central government, after due appropriation, to payout of the consolidated fund of india such sums as may from time to time be necessary for the payment of charges and assessments on the use of the special drawing rights that may be created by the fund it is not possible to estimate at this smge thc payments which will have to be made as the :lctivation and operation of the special drawing rights scheme will depend on decisions to be taken by the board of governors of the fund in ,iccordance with the amended articles of the fund the quantum of allocation of special drawing rights and the period over which the allocetion will be made are also decisions yet to be taken by the board of governors it is proposed in the amendments to the articles of the fund that participating members in the scheme should pay charges on the net cumulative use of special dmwing rights assessments are payable by participants to meet the administrative casts of operating the special drawing account the rate of charges is initially fixed at 15 per cent on the use of special drawing rights appropriate assessments as decided by the fund will be payable at a rate not greater than 2-per cent or the rate of remuneration decided under article v, section 9t whichever is higher 'and not smaller than 1 per cent or the rate of remuneration decided under article v, section 9, whichever is lower, to the gellenll account of the fund· for meeting the cost of operations of the s~al drawing account these charges and assessments will be paid in special drawfngrightf!' apart from these payments that may arise from time to time in the future, flo other recurring or non-recurring expenditure is involved  annexure extract from tile international monetary fund and bank act, 1945 - • - • •and bank  2 (1) there shall be paid out of the consolidat1!d fund of india all pay mente such sums as may from time to time be required for the purpose' of to internspayingtlonal fund - - - - - (c) any charges payable by the central government to the in· ternational fund under section 8 of article v of the fund agreement; - - - - - :, "  ,   ~ -' -,, ,:,~ ~ , "',  ,  a billfunher to a111end the international monetary fund and bank act, 1945 ,  