 bid no 70 of '1981' _  _- ---- the export-import bank of india bn,l,· ' i981 arrangement of clauses chapi'er ipal:launary  clausfb1 short title, extent and commencement 2 definitions  chapter ii establisjppnt of the exfort-import bank of india ann incorporation thereof3 establishment and incol'j'ol'ation of exporwmport bank of india 4 authorised capital  chapter iii management 01' the exim bank5 management 6 constitution of board '1 committees 8 fees and allowances of directors and members of committees " -, 9 disquali~cations  chapter iv business of the exim bank10- bw\iness"of exim bank  chapter v resources of the exim bank11 loans by central government 12 borrowings and acceptance of deposits by ex;i~ b~dk 13 loans in foreign currency 14 grants, donations, etc, to exim bank  chapi'er vi export development fund15 export development fund  clauses16 credits to export development fund 17 utilisation of export development fund 18 debits to export development fund 19 accounts and audit of export development fund 20 liquidation of export development fund  chapi'er vii general fund, accounts and audit21 general fund 22 preparation of accounts and balance-sheet 23 disposal of profits accruing to general fund 24 audit 25 saving chapter viii  transfer of part of bus!nfss of developmj:nt bank26 transfer of part of business of development bank  chapter ix miscellaneous27 staff of exim bank 28 delegation of powers 29 returns 30 obligation as to fidelity and secrecy 31 defects in appointments not to invalidate acts, etc 32 arrangement with exim bank on appointment of directon to prevail 33 indemnity of directors 34 protection of action taken in good faith 35 act 18 of 1891 to apply in relation to exim bank 36 section 34a and section 36ad only of act 10 of 1949 to apply to exim bank 37 act 43 of 1961 and act 7 of 1964 not to apply to exim bank 38 liquidation of exim bank 39 power to make regulations 40 amendment of certain enactments 41 power to remove difficulty the first schedule the second schedule  the exe?,ort-import ba[k of i~dia bill, 1981 (to belas introduced in ipk sabha)1 page 5, line 33;-ru "trat" ~ "that" 2 page 13, lines 23 and 24,-fqr "finaning" nad "financing"  3 page 18, line 32, in column (i),-, for "clause, ( viii)" ~ "clause (byiii)" 4 page 19, line 5, in columri (i)1-for "( 4)" ~ ii( 4j) " 5 page 19, in co lumn (2),-against line 29,- in se r t "ib - " ' page 19, ljne 31, in column (i),-omit "full" ? page 2-, line 8 from bo t tom, -, !q!: "ctivi ties" ~ "act;ivi ties 1f 8 page 2', line ? from bo t tom,-nu: "0 grant" ntaf1 lito grant" 9 p ag'e 30, line 10 from bo ttom,-,fqr "and" ~ "any" new dellii; may 4, 1981 vaisakha14, 1903,( saka)  bill no 70 of 1981 the export-import bank of india bill, 1981 a billto establish a corporation to be known as the export-import bank of india for providing financial assistance to exporte'j's and importers, and for functioning as the principal financial institution for co-ordinating the working of institution! engaged in financing export and import of goods and sertlices with a view to promoting the country's international trade and for matters connected therewith or incidental thereto be h enacted by parliament in the thirty-second year of the republic of india as follows:- chapi'er i preliminary5 1 (1) this act may be called the export-import bank of india act, 1981 short title, extent and colqdlenceldlint !! ~ '(2) it extends to the whole of india (3) it shall come into force on such date as the central ;-, ' government may, by notification in the official gazette, appoint, f 0 and different dates may be appoillt~d for di~erent provislom of this act 2 in this act, unless the context otherwise requires,-(a) "boardl ' means the board cif directors of the exim bank referred tq in section 6; (b) "development bank" means the industrial development bank of india established under the indus-s trial development bank of india act, 1964; 18 of 19m (c) "exim bank" means the export-import bank of india established under section 3; (d) "export" and "import" mean, respectively, export from or import into india or any other country of goods or 10 services, or both; (f» "goods" includes all materials, commodities and articles in a solid, liquid or gaseo'us state and all fonns of energy; (f) "notification" means a notification published in i, the official gazette; (g) "prescribed" means prescribed by regulations made under this act; (h) "reserve bank" means the reserve bank of incua constituted under the reserve bank of india act, 1934; 20 2 of 193 •• ~ (i) "scheduled bank" means a bank, for the time 2 of 1934 being, included in the second schedule to the reserve bank of india act, 1934;  (j) "services" includes,-(1) providing personnel (including skiue<l or un- 25 skilled workmen and persons for rendering technical or ~ other services) for the purposes of any work or project (by whatever name called') or any activity; ·(11) transferring of technology, including transferring, or securing the transfer of ri~ht8, knowhow ex- 30 pertises or other skill with respect· to any patent, invention, model, design secret formula or process or similar property; (iii) furnishing any information, blueprints, plans, or advice with respect to any matter; and (iv) making availabl~ any other resources  chapter n establishment 0" the exl'ort-import bank 0" lirola and incorporation mereof u  t and ideorpora tlao of i:qiort import bank of iiuua 3 (1) with effect from such date as the central government may by notification appoint there shall be established 40' for ,the purposer of this act a corporation to be known as the ~rt"fmport bank of india  : (2)'l'he exim bank shall be a· body corpora~\\dth 'tbe name a!ore'!said bavinli{ l)erpetual succession an,d ,8  ~q~on 4s ,ealwi ~~f subject to the f()yi~q~s of thil a~,  \q' acqtiffe~ i ht)ld 'aiitl atij, tit property and to cotttract, and may,  ,bf~t~"sue)or,he sued : 'r (~) _the~~a4 oftice of the exim bank shall be at bombay , ,of,,~t~ such, otper ~~ce as th~ central government iiuly, by 5 jl9wication, specify (4) the exim bank may establish ~ces, branches or ,)ieen,;ies at nch places in or outside india as it may consider necessary   ' 4  (1) ,the authodsed tapital of the exim bank shall be two authorised  10 huddred crores of rupees: capital pj:ovided that the central government may, by notification, inerease the said eapital up to five hundred crores of rupees (2) the'risued capital of the exim bank shall be wholly ~rlhd by, the central government  15 chapi'er iii management of the exim bank5: (1) 'thegelleral slilperintendenoe, direction and manage-management mentof, the affain: and business of the exim bank shall vest in the board, wfiieh may exercise all powers and do all acts ~o and things which may be exercised or done by the exim bank ,(2) : save as qtherwise provided in the regulations made under this act,-(a) the chairman, if he is a whole-time director or if he is holding offices both as the chairman and the managing 'director, or (b) the man~ging director, if the chairman is not a whole-tilile director, or, if the chairman being a wholetime <urector, is absent, shall· also have powers of general superintendence, direction 30 and management of the affairs and business of the exim bank and may also exercise all powers and do all acts and things 'wliteh tnay be exercised or done by the exim bank (3) subject to the provisions of this act, the board in discharging its functions shall act on business principles with 3s ·d·te regard to public interest (4) in the discharge of its functions under this act, the exim bank shall be guided by such directions in matters of poucyrinvolvingpublic interest as the central government ~y give to it in writing 40 6 (1) the board of directors of the exim bank shall consist constitution of ,the following, ,namely: _ of board (a) a rhairman and a managing director appointed by the central government: i' r : ' "'prowded'thatthe"same petsonmay,,1deappointeg ,to fs fwmiqij ~qth ~s chairman llnd as ma-na~ng directorj (b) one director nominated by the reeerve b~;, (c) one director nominated by the development bank; (d) one director nominated by the export credit and guarantee corporation limited, being a government company within the meaning of section 617 of the com-5 panies act, 1956; 1 of 1958 (e) not more than twelve directors nominated by the central government of whom-(i) five directors shall be officials of the centrpl government; 10 (ii) not more than three directors shall be from the sch€'duled banks; (iii) not more than four directors shall be persons who have special knowledge of, or professional experience in, export or import or financing thereof j 5 (2) the chairman and the managing director shan hold office for such term, not exceeding three years, as the central government may specify in this behalf ana any person so appointed shall he eligible for re-appointment (3) notwithstanding anything contained in sub-section (1), 20 the central government shall have the right to terminate the term of office of the chairman or the managing director, as the case may be, at any time before the expiry of the term specffied 'under sub-section (2) by giving him notice of not less than three months in writing or three months' salary and 25 allowances jn lie'll thereof, and the chairman or the managing director ae; the case may be, shall alro have the right to relinquish hie: rtffice at any time hefore the expiry of the term sperified under sub-se'!tinn (2) bv {!iving to the central government notice of not less than three months in writing or 3lj three month,,' sabry and allowances in lieu thereof (4) the chairman and the mana~ng director shall receive such salary and allowances as may be determined by the central government (5) the central government may, at any time, remove 35 the chairman or the managing director, as the case may bf, from office: providerl that no ner!'lon shall be removed from his ofrlce under this sub-section unless he has been given an opportunity of showin£r cause against his removal 40 (6) any director nominated under sub-clause (iii) 0'1 clause (e) of sub-section (1) shall hold office for a period of two years (7) any other director nominated under this section shall hold office during the pl~sqre of the authority nominating 45 ~   (8) the board shall meet at such times and places and shall obsel'yesuch rules of procedure in regard to the transaction of business at its meetings as may be prescribed (9) the chairman or, if for any reason he is unable to '5 attend a meeting of the board, the managing director or, in the event of both the chairman and the managing director being unable to attend a meeting, any other director nominated by the chairman in this behalf and in the absence of such nomination any director elected by the directors present !from 10 among themselves, shall preside at the meeting  (10) all questions which come up before any meeting of the board shall be decided by a majority of votes of the directors present and voting, and in the event of an equality of votes, the chairman, or in his absence, the managing director, 15 or in the absence of both the chairman and the managing director, the person presiding, shall have and exercise a second or casting vote (11) save as otherwise provided in sub-section (10), every director of the board shall have one vote, 20 7 (1) the board may constitute such committees whether q>nunitteee, consisting wholly of directors or wholly of other persons or partly of directors and partly of other qersons for such purpose or purposes as it may think fit (2) any committee constituted under sub-section (1) shall 25 meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be prescribed fees and allowances c1i directors and members of conunitteea, 8 the directors and the members of a committee shall be paid such fees and allowances as may be prescribed for attend-30 ing the meetings of the board or of any committee constituted in pursuance of this act and for attending to any other work of the exim bank: provided trat no fees shall be payable to the chairman, if he is appointed as a whole-time chairman, or to the managing 3s director or to any other director or member who is an oftlcial of the government, the reserve bank or the development bank 9 no person shall be a director of the board constituted diaqualiftcationa under this act, who-40 (a) is, or at any time has been, adjudged insolvent, or (b) is of unsound mind and has been so declared by a competent court, or (c) is, or has been, convicted of an offence which, in the o~on of the central government, involves moral tur-·pitude, or (4):ats, in, the,·opiitiga of tde ,cbattal;qoueillftl~ so ; ~wseg' hia~posi1ton ,as a direetor, as tto :nmdert iaia,nms' nuance ani, tbe bouddetrimental totbe iatsestaol·  iha general public, or (e) has been, for any reasoft, removed,fromtbe board; 5  chapter iv business of the exim ba"hi!:19, (1) the exim bank may grant in or outside india iqansand advances by itself or in participation with 8ilybadk business of exim bank oj: financial institution whether in or outside india for ~ pul'_ 10 poses of export or import and shall also function as the principal financial institution for co-ordinating the working of institutions engaged in financing of the export and import in such manner as it may deem apprdl;lriate (2) the exim bank may also carryon and transact all or j 5 any of the following kinds of business, namely:-(a) granting loans and advances to a scheduled bank or any other bank or financial institution notified in the official gazette by the central government in this behalf by way of refinance of loans and advances granted by it for 20 purposes of export or import; (b) underwriting the issue of stocks, shares, bonds or debentures of any company engaged in export or import; (c) issuing bid bonds or guarantees in or outside india by itself or in participation with any government, bank or 25 financial institution in or outside india; (d) accepting, collecting, discounting, re-discounting, purchasing, selling or negotiating in or outside india, bills of exchange or promissory notes arising out of trlillls-actions relating to export or import and granting of loans 30 and advances in or outside india against ~h bills ,or promissory notes; (e) granting, opening, isswng, confu:ming or endoraing letters of credit and negotiating or collecting bills ,aild other documents drawn thereunc;ler; 35 (f> undertaking any transaction involviag' ·acomblna  tion of government to government and commercial clltt: for purposes of export or import; (g) granting lines of credit to the' govql'did8dt'lof lily foreign state or any financial institution :qr penaollloujikie,40 india for purposes of export or import; (h) granting loans and advances 'outside india for any in?ian ,joint venture; (i) granting loans and advancesao,ajlf·pqnia~adia in connection with his equity contribution in any joint 45 ", l:vetuul'e in any country outside jndia;·'  (;) financing ~xport or ~ of: 'm'at:~"'and equipment on lease basis; ',() ,  ," ,: (ie) subicribidg to, or investing in, or purchasing of, stocks, shares, bonda or debentures of any development bank or export-import bank of any country outside !della; 5 '(i) buying or selling of, or entering into such other dealings in, foreign exchange, as may be necessary for the discharge of its functions; (m) q:,eniilg of any account in any bank in or outside india or the making of any agency arrangement with, or aeting 8s an agent or correspondent of, any bank or other institution 1n or outside india; 10 (n) transferring, for consideration, any instrument nlatin'g to loans and advances granted by it; (0) issuing participation certificates; (p) subscribing to, or investing in, or purchasini of j 5 stocks, shares, bonds or debentures to the extent necessary for the enforcement of a lien, pledge or other contractual right; (q) undertaking and financing of research, surveys, techno-economic or any other study in connection with 120 the promotion and development of international trade; (r) providing technical, a:dministrative and financial assistance of any kind for export or import; (s) planning, promoting, developing and financing export-oriented concerns; (t) forming or conducting subsldiaries for carrying out ita fudctiodsi (1£) acting as agent of the central government, any state government, the reserve bank, the development bank or any other person as the central government may authorise; go (v) collecting, compiling and disseminating market and ereciit mformation in respect of international tl"ade; (10) doing any other kind of business which the central government may authorise; 35 (~ generally doing such other acts and things as may be tncmental to, or consequential upon, the exercise of its powers or the discharge of its duties under this act or any other law for the time being in force, including sale or transfer of any of its assets to c' (3) the exim bank may receive in co~deration of any o'f the service mentioned in sub-sections (1) and (2) such com-iiliiihn bjlokerase, interest, remuneration or fees u may be ainid upoa   ~ (~) tb~ ~ baak shall not grant any loan or advance 45 or other fbi8nclal accommodation on the security of i_ cnna bonds or debentures  chapter v resources of the e:xik bamtll the central government may, after due appropriation made by parliament by law in this hehalfl advance to the exim bank- ••• 5 loans by central governmenl (a) a loan of twenty crores of rupees at a rate of interest of five and a quarter per cent per annum repayable in fifteen equal annual instalments, commencm on the expiry of a period of fifteen years from the date of receipt of the loan; and 10 (b) such further sums of money by way of loan on such terms and conditions as may be agreed upo  : provided that the central governmont may, on a request being made to it by the exim bank, increase the number of instalments or alter the amount of any instal- 15 ment or vary the date 011 which any instalment is payable under dause (a) ~ 12 (1) the exim bank may, for the purposes of carrying out its functions under this act,-(a) issue and sell bonds and debentures with or with- 20 out the guarantee of the central government; 'borrowings and acceptance ofdeposits byexim bank (b) borrow money from the reserve bank-(i) repayable on demand or on the expiry of fixed periods not exceeding ninety days from the date on which the money is so borrowed against the secu- 25 rity of stocks, funds and securities (other than immovable property) in which a trustee is authorised to invest trust money by any law for the time being in force in india; (ii) against bills of exchange or promissory notes 30 arising out of bona fide commercial or trade transactions and bearing two or more good signatures and maturing within five years from the date of the borrowing; (iii) out of the national industrial credit (long ss term operations) fund established under section 46c of the reserve bank of india act, 1934 for any of the 2 of 193'-purposes specified in that section; (c) borrow money from such other authority, organisation or institution in india as may generally or ape- 40 dally be approved by the central government; (d) accept deposttsrepayable 'after tbeexplry:of • : period which shall not be less than twelve monthl inm· the date of the making of the deposit on such ~,as ·'may generally or special1ybe 'approved bytbe :a~~rveas b8dk; " ' , ('' , ~  \ ~) the central government may, on a reqaett bein, made  u; :it;hy the exim bank, guarantee the bonds and debentures issued ~ that bank as to the repayment of priaelpai ad the "jjayment of interest at such rate as may be ked by that s government loansln foreiln currency 46 of 1973 13 notwithstanding anything contained in the foreign exchange regulation act, 1973 or in any other law for the time being in force relating to foreign exchange, the exim bank may, for the purpose of granting loans and advanees 10' under this act, borrow, with the previous consent of the central government, foreign currency from any foreign state or from any bank or financial institution in any foreign country or otherwise 14 the exim bank may receive gifts, grants, donations or is benefactions from government or any other source in or outside india  grants, donations, -m:, to exim bank  chapter vi export development fund15 with effect from such date as the central government ~o may, by notification, appoint, the exim bank shall estabusb a spedal fund to be called the export development fund export develop ment fund 16 to the export development fund shall be credited-credits to export development fund (a) all amounts received for the purposes of that fund by way of loans, gifts, grants, donations or benefactions from government or any other source in or outside india; (b) repayments or recoveries in respect of loans, advances or other facilities granted from the fund; (c) income or profits from investments made from the 30 f'und; and i '(d) income accruing or arising to the fund by way of interest or otherwise, on account of the application of the fund in accordance with the provisions of section 17 utilisa tion of export development fund 17 (1) where the exim bank considers it necessary or 35 desirable so to do, it may, subject to the provisions of subsections '(2) and (3), disburse or spend from the export development fund any amount on account or in consequence of the grant of any loan or advance, or on account or in conseque~e of entering into any arrangement under sub-section (1) 40 or clause (0) or clause (c) or clause (d) or clause(q) or clause (r) or clause (8) or clause (w) or clause (x) of sud-section (2) of section 10: °providttd that before granting any such loan or advanee or ent~ngfn10 any such arrangement, the exim bank sliad olj-4s tain the: prior approvlll of the central go~mment (2)  befqre seeking the approval of the central ~t udder ,su~tion (1) the exim bank ban aatiafja j 1~:t1aat banking or other ftnad0ial instjtoutions orothe: ,  not likely to grant such loan or advance, or to enter, mto,iqj such arrangement in the ordinary course of bl1s1~ul 5 (3) the central government shall, before giving its appr0-val, satisfy itself that such loan, advance or arrangem$dtja necessary as a matter of priority in the interests of the international trade of the country (4) for the removal of doubts, it is hereby declarecltbat 10 nothing contained in this section shall be deemed to preela4e the exim bank from granting any loan or advance or from entering into any arrangement under sub-section (1) or elaule (~) or clause (c) or clause (d) or clause (q) or clause (t') or clause (s) or clause (w) or clause (x) of sub-section (2) i, of section 10 without the approval of the central government if no amount in respect thereof is to be disbursed or spent from the export development fund 18 (1) to the export development fund shall be deblted-(a) such amounts as may 'from time to time be dil- 20 bursed or spent under sub-section (1) of section 17; debit to export development fund '(b) such amounts as may be required for discharglng the liabilities in respect of loans received for the purposes of that fund; (c) any loss arising on acco'unt of investment made is out of that fund; and (d) such expenditure arising out of, or in connection with, the administration and application of the fund  may be determined by the board (2) no amount shall be debited to the export development go fund e~ept as provided for in sub-seetlon (1) 19 (1) the balance-sheet and accounts of the export,development fund shall be prepared in such form and manner as may be prescribed accounts and audit ofezport develop ment fund (2) the board shall cause· the books and accouuts of the !is export development fund to be closed and balanced as on the 31st day of december each year (3) the export development f\md shall be audited by one or more auditors (\ppcnnted by the central government tulcler sec:u9n 24 who shall make a separate report themoll 40 (4) the provisions of sub-sections (2), (8), (4) and (8) of section 24 shall, so far as may be apply in relation to the audit of the export development fund (5) the exim bank shall furnish to the central government, withiu four mcmthl-from the date, oil -wbich the ~tii 45 of the export development fund are clotedand bajanoad  a ~py of the ba~anc~sh~t~nd ~c~1dlts t~~er wit~ ~  ;, oirthe-::lwlitara' report and a report on·the operation 'of the '~d,·4"'agdberelevaat year 8dd the 'cedtnl go~t abidl, 8br'jioodq 'may be after they are received by it, c811ie the imide' to be laid before each houle of parliament s zo' the elc:port development fund shall not be closed or wound up save by order of the central government and in such manner as that government may direct  chapter viiliquidation of export development fund  general fund, accounts and auditgeneral fund 10 11 all receipts o'f the exim bank other than those which are to 'be -credited to the export development fund under'this act shall be 'credited to a fund to be called the general fund and all payments by the exim bank, other than those which are to be debited to the export development fund, shall be r s made out of the general fund 22 (1) the balance-sheet and accounts of the exim bank shall be prepared in such form and manner as may be prescribed (2) the board shall cause the bonks and accounts of the prepara-tion of accounts and balancesheet go ex:im bank to be closed and balanced as on the 31st day of december eaeh year 23 (1) the exim bank may establish a reserve fund to which may be transferred mlch sums as that bank may deem fit out of the annual profits accruing to the general "fund disposal of profits accruing to general fund 25 (2) mter making provision for bad and doubtful debts, depreciation of assets and for all other matters for which provision is necessary or expedient or which is usually provided for by bankers and for the reserve fund referred to in subsection (1), the exim bank shall transfer the balance of the 30 net profits to the central government audit 1 qf 1956 24: (1) the account~ of the exim bank shall be audited by auditors duly q'llalified to act as auditors under sub-section (1) at section 226 of the companies act, 19::'16, who shall be appointed by the central government for such term and on 3s such remuneration as the central government may fix (2) the auditors shall be supplied with a copy of the and1ill'balance-sheet"of the exim bank and it shall be tbefr duty to examme it together with the accounts and vouchen r~~tijlg  thereto and they shall have a list delivered to them 40 of all boolcs' kept ,by the exfm bank and shad at all ~a8o~­ab~ ,tijn~, have access to the books, accounts, vouchers and outer cic)cuments fif the exim bank, (a)' 'fhe 8'i1ditors may, in relation to such accounts,examme any director or any ,oftlcer or other employee  of the 4s exfm bank and shall be efttitled 'to require from t}w!:1!oard or·  , '4)1' other employee· of the exim bank· su~b information ,and explanation as they may thmk necessary for the perfwm~n(!~ cj1 tp'~ir ~uij~~ (4) the auditors shall make a report to the bdm bank upon the annual balance-sheet and accounts examined bytbem and in every such report they shall state whether in 'th8ir opinion the balance-sheet is a full and fair baladce-lheet coiltaining all necessary particulars and properly drawn up 10 as 5 to exhibit a true and fair view of the state cif aftairs of the exim bank and in case they had called for any explanation or information from the board or any officer or other employee of the exim bank whether it has been given and whether it is satisfactory 10 (5) thp exim bank shall furnish to the central government within four months from the date on which its accounts are closed and balanced, a copy of its balance-sheet and accounts together with a copy of the auditors' report and a report of the working of the exim bank during the relevant j 5 year, and the central government shall, as soon as may be after they are received by it, cause the same to be laid before each house of parliament (6) without prejudice to anything contained in the preceding sub-sections, the central government may, at any time, 20 appoint the comptroller and auditor-general of india to examine and report upon the accounts of the exim bank and any expenditure incurred by him in connection with such examination and report shall be payable by the exim bank to the comptroller and auditor-general of india 25 saving 25 save as otherwise provided in sub-section (4) of section 19, nothing contained in this chapter shall apply to tbe export development fund  chapter viii trans jon of part of business of development bank 30transfer of part of bus inebb of developmentbank 26 (1) on such date as the central government may, by notification, appoint, all business, property, assets and liabilities, rights, interest, privileges and obligations of whatever nature of the development bank in so far as they relate to the export financing functions of that bank shall stand transferred to, and 35 vest in, the exim b!lilk (2) for the transfer to, and vesting in, the exim bank under sub-section (1), the exim bank shall pay to the development bank such amount in such manner and in such number of instalments as may be determined by the central governmenl 40 (3) all contracts, deeds, bonns, agreements, powers-ofattorney, grants of legal representation and other instruments of whatever nature of the development bank which relate to the export financing functions of that bank and which are subeisung or having effect immediately before the date refer- 4s red to in sub-section (1) and to which the said bank is a party or which are in fevour of that bank shall,-(0) if they relate exclusively to the export :financing functions of that bank, be of full force ana erect against or in favour vf the exim bank, as the case may be, and may be enforced and acted upon as fully and effectively as if instead of the development bank the exim bank had been a party thereto or as if they had been issued in favour 5 of the exim bank; and (b) if they relate not only to the export financing functions of the development bank but also to any of the other functions of that bank, be of full force and effect against or in favour of both the development bank and the 10 exim bank and may be enforced or acted upon as fully and effectively as if in addition to the development bank the exim bank had also been a party thereto or as if they had been issued in favour of the development bank and also the exim bank 7 is (4) if, on the date referred to in sub-section (1), any suit, appeal or other legal proceeding of whatever nature relating to the export financing functions of the development bank is pslding, the same shall not abate, be discontinued or be in any way prejudicially affected by reason of the transfer to the e:xim 20 bank of the business of the development bank or of anything contained in this act, but the suit, appeal or other proceeding may,,,-(a) where it relates exclusively to the export finaning functions of the development bank, be continued, prosecuted and enforced by or against the exim bank; and (b) where it relates not only to the export financing functions of the development bank but also to any of the other functions of that bank, be continued, prosecuted and enforced by or against the development bank and the exim bank or, if the central government by s~ order in writing so directs, by or against such one of the said two benks, as may be specified in such order (5) if any question arises as to whether any eontraat, deed, bond, agreement, powers-of-attomey, grant of legal represen-s5 taticmor other instrument referred to in wb-section (3) or any 5uit, appeal or other legal proceeding referred to in sub-section () relates or relates exclusively to the export financing functions of the development bank, it shall be referred to the central government for decision and the decision of the cen-40 tra! government thereon shall be final of 1964 (6) the provisions of this section shall have effect notwithstllllding anything eontalned in the industrial development bank of india act, 19m or any other law or any fnstrument havmgtorce by virtue of the said act or other law  chapter ix 45 misci:llanilot12'1 (1o)theexim bank may appoint such number of ofilceri and· other employees 88 it aodsiders lliiceaury or dlsirable fol' the eftlclent performance of if8 funct10na and cletermine the 50 terms and concliti0d8 of their appointment and -vice (2) without prejudice to the provisions of sub-secuon(l), it shall be lawful for the exim bank to utwle, and for'the deyelopment bank: to make available the sel"v'icea of i\ich std of the development bank having expetieace re1a'tih, to export financing functions on such terms and condfttons as may s be agreed upon between the exim bank and the development b~ i dele~ uon of powers returns (3) the dlolties and conduct, terms and conditions of 8iii'¥1ce and the establishment and maintenance of a provident fum! or any other fund for the benefit of the officers and other emplo- 10 yeea of the exim bank shall be such as may be prelcribed zi the board may, by general or special order, delegate to any direeror or any offh::er or other employee of the exim bank, subject to such conditions and limitations, if any, as may be specified in the order, such of its powers and functions udc\er is this act es it may deem necessary 29 the exim bank shall furnish, from time to time, to the central government such returns as the central gov'el'dj!leldt may require obligation  tolldelit, and secrecy 30 (1) the exim bank shall not, except as otherwise reo- 20 quired by this act or any other law, divulge any information relating to, or to the affairs of, its constituents except in circumstances in which it is, in accordance with the law or practice and usage customary among bankers, necell8al'y or appr0-priate for the exim bank to divulge such information 25 (2) the exim bank may, for the purpose of efficient discharge of its functions under this act, collect from, or furnish to, the central government, the development bank or any scheduled bank or such other financial institution, as may be notified in the official gazette by the central government in this behalf,30 credit information or other information as it may codsider useful for the purpose, in such manner anel at such tlmes, as it may think fit -  ~nwion-for the purpose of this 8ub-eecttoo, tile_· pr~ "credit information" shall have the same men, 35 in clauie (c) of section 45a of the reserve bank of imiiaact, 1934, sub~ to the roodificatioa that "banking compaay:"'" 2 of 19m ferrec! to therein shall mean the development bmt,any  duled bank or other financial institution as afereaaid (3) every director, member of a committee, auditor or am· 40 cer 0, ot~r ~ployee of the l:xim bank or cd the ~pjimiim bank whose services are utilised by the him bank ~ tm provisions of this act, shall, beforee~ upojl hie- make a declaration of fidelity and secrecy in the form set out in the first schedule 45 31 (1) no act or proceediilg of the board or of any c0mmittee of the him bank shatt be questioned on the ground mqily of tbe «x!istenee of an,-vaeiiloy, til, or4t6et ~ tile conmttutioe 01,' the boud'or t_coiiiidittee;'sstlle< __ ·~'" defects in appo-intments dol to mvalidate ada, ate (2) no act done by any person acting in , good ~th as a director shall be deemed to be invalid merely on the groulld that he was disqualified to be a director or that there was any other defect in his appointment 5 32 (1) where any arrangement entered into by the exim bank with a company provides for the appointment by the exim bank of one or more directors of such company, such provision and any 'appointment of directors made in pursuance thereof shall be valid and effective notwithstanding anything to j of 1956 arradlementwith exim bank on appointment of directors to prevail " 10 the contrary contained in the compan ie03 act 1956, or in any other law for the time being in force or in the memorandum, articles of association or any other instrument relating to the company, and any provision regarding share qualification, agelimit, number of directorships, removal from office of directors i" and such like conditions contained in any such law or instru-- ment aforesaid, shall not apply to any director appointed by the exim bank in pursuance of the arrangement as aforesaid (2) any director appointed as aforesaid shall-20 (a) hold office during the pleasure of the exim bank and may be removed or substituted by any person by order in writing of the exim bank; (b) not incur any obligation or liability by reason only of his being a director or for anything done or omitted to be done in good faith in the discharge of his duties as a director or anything in relation thereto; (c) not be liable to retirement by rotation and shall not be taken into account for computing the number ot directol'6 liable to such retirement indeoulity of directors 33 (1) every director shall be indemnified by the exim bank against all losses and expenses incurred by him, in, or in 30 relation to, the discharge of his duties, except such as are caused by his own wilful act or default (2) a director shall not be responsible for any other director or for any officer or other employee of the exim bank or tor any 1088 or expenses resulting to the exim bank from the 35 insufficiency or deficiency of the value of, or title to, ~ property or security acquired or tak~ on behalf of the exim bank or the insolvency or wrongful act of any debtor or any per80il under obugation to the exim bank or anything done in iood 40 faith tn the execution of the duties of his office or in relation thereto " protection of action taken in iood faith -,,~lljfo stiit· or' other legal proceeding mal1lle agabiit the  'film :bailk oranydireetol' or any oflk!er or mherimnploywiof "the'mnn'bank:orany 'other person aut~ by' ddfn bank to discharge any functions' under this actl 'fordy kii8 'or damage caused or likely to be caused by anything which is in 5 good faith done or intended to be done in pursuance of this aict'ol" any other law or provision having the force of law - , 'the bankers' books evidence act, is!}! shall apply in relm10n to the exim bank as if it were a bank as defined in seetion2 of that act 10 act 18 of 1891 to' applytll relation toexim bank 38: nothing' contained in the banking regulation act, 1949, except, 'section 34a and section 36ad thereof, shall apply to the exim bank section 34a and section 36adonly of act 10 of 1919 to apply toexlm bank 37 notwithstanding anything contained in the income-tax act, 1961, or the companies (profits) surtax act 1964 or any t 5 othec enactment for the time being in force rehiting to tax on income, profits or gains, the exim bank shall not be liable to pay income-tax, surtax or any other tax in respect of- act 43 of 1981 and act 7 of 1964 not to apply toexbn bank (~ • , income, profits or gains accruing to the export dewls>pment fuftd or any amount received to the credit 20 of that fund; and - (b) any income, profits or gains derived, or any amount  recmved,' by 'the ~m bank liquidation of exim bank 38: no provision of any law relating to the winding up of companies or corporations shall apply to the exim bank and' the 25 exim bank shall not be placed in liquidation save by an order of the central government and in such manner as it may direct power to makereplatton • at!, (:1) the ,board may, with the previous approval of the 0ml'al'~' mab re,ulations not inccmsia4iebt with tma aetto'pmytde 'fot 'au matters for  which provision  atty,~, ~ilt for the purpose of giving e1fecttothe, provi_ go  ·of/th!a·~ , f j"'(jflti partittilar aildwitbout ~udiceto:tm:i,erertttilt;  ' ,dae foregoing power, such regulations may provide for~  (a) the times and placeso!> the-meetings of the board or of any committee constituted under this act and the procedure to be followed at such meetinga including the quorum necessary for the transaction of business; 5 (b) the fees and allowances that maybe paid 'td 'the dtreetors and the members of 'a committee; ,  (c) the form and manmer in which·tlu! ~~ and the account of the export developmert f~ ~dcil- tlje exim bank shall be prepared; 10 (d) the duties and conduct, and the terms and conditions of ~ervice of the officers and other employees of t~ exim bank; (e) the establishment and matnteaance of provldent fund or any othel- fund for the benefit of the ofileen·tiftd other employees d the exim bank; and (f) any other matter which is to be, or may be, preserihed (3) every regulation made by the board under this act shall be laid, as soon as may be after h is made, before each 20 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 modifiea-25 tion in the regulation or both houses agree that the regulation should not be made, the regulation shall thereafter have effect only in such modifted 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 regulation 30 ·40 thf! (>nactments specified in the second schedule shall be amended 'in the manner directed in the first column thereof and such amendments shall take effect on the dates s}>elciftecl in the second column of that schedule amend mentor certain enact ments power to remove dlftlculty 41 if any difficulty arises in giving etfectto the pj'pvns 3s of this act, the central government may, by or"" dedytjling, not inconsistent with such provisions, for the purpoje of removing the difbculty: provided that no aueh,orde,r ball bem_iiftett"the' urira-40 tion of three years from the date of commencemert-'df tiiw}\qt  [see section 30 (3) ] declaration of fidelity and smcrecyi  , do hereby declare that i will faithfully, truly and to the best of my skill and ability execute s and perform the duties required of me as director, member of  "  committee, auditor, officer or other employee (as the case may be) of the export-import bank of india and which properly relate to the office or position held by me in or in relation to the said exim bank 10 i further declare that i will not communicate or allow to be communicated to any person not legally entitled thereto any information relating to the affairs of the export-import bank of india or to the affairs of any person having any dealing with the said exim bank, nor will i allow any such person to 1 s inspect or have access to any books or documents belonging to or in the possession of the said exim bank and relating to the business of the said exim bank or the business of any person having any dealing with the said exim bank (signature) 20 signed before me  the second schedule (see section 40) amendments of certain mactments part i amendments to the reserve bank of india act, 1934amendments date on which amendments shall take 30 effect  (i)1 in section2, after clause (viii), insert the following clause, namely:-| the      | date    | of       ||----------|---------|----------|| lishment | of      | the exim || bank    |         |          || 35       |         |          |'(b"iiia) "exim bank" means the export-import bank of india established under the export-import bank of india act, 1981 ' 2 in section 1,,-do (a) in clause (4g), after the words "the deve1~ ment bank", insert the words "or the exim bank"; (b) in clause (4-1), after the words" development bank", insert the words "the exim bank"; 45 (c) aner clause (i-i), insert the following ~uiic, ~ly:_ amendmenta date on which amendments shall take effect (i) 5 10 '(4) the making to the exim bank the date of estabof loans and advanceslishment of the exim bank (ii) repayable on demand or on the expiry of a fixed period not exceeding ninety days, from the date of such loan or advance against the security of stocks, funds and securities (other than immovable property) in which a trustee is authorised to invest trust money by any law for the time being in force in india; or 20 (b) against the security of bills of exchange or promissory notes, arising out of bona fide commercial or trade transactions bearing two or more good signatures and maturing within five years from the date of such loan or advance, (d) in clause (12b), after the words "the devdopment bank" insert the words "the exim bank", 3 in section 42, in sub-clause (e) of the explanation under the proviso to su bose ction (1), after the 30 words "or from the full development bank", insert the words or from 'be exim bank" do 35 4 in section 46 c, in sub-section (2), after clause (b), insert the following clauses namely:-ec(e) the makingto the exim bank of loans and advances for the purposes of any business of the exim bank ; (d) the purchas~ of bonds and debentures issued by the exim bank",  part ii amendment to the industrial dlsput1!8 am', 1947 (140' 1947)amendment date on which amendment shau take effect 45 in section !z, in clause ebb), after the words the date of estab-"and includes" insert the words "the export-1mlishment of the port bank of india" emn bank  part iii amendmbwrsto the banking reoulation aot, rs49· (10 of 19-4-9)amendments 5 date on which amendments ~ take effect (2) (j) --------10 the date of estal>-tilitment of the :eaim bank 1 in section 18, in the explatullion, in clause (6), after the words "the lttd' __ dewlopment bank of india", insert the·weids ''or from the export-import bank ofindiatl, do do 15 il in section 3¢ inll,u~tioll (j) ~ the word "includes" ~t_ t4c' woidi c~tju: export- import bank oj~" 3 in section 36ad ill' ailb-jcctioo (3), after the word "inc1uda" insert the words "the export-import bank of india," do ll" 4 in section 56, in clause(,b) actac elipliination under clause (j) after tbeiwdrda "dleiadumial development bank of india, n , :imlcrt the  m "the export import bank ()f india,"  statement of objects and reasons'j1iteiibtll ''see1m' i tb 'pl'alde-for 'the establishment of  ~rpo­ration to be known as the export-import bd,ofllldla"to strengthen and broad-base the existing institutional arrangem~s('to'rrt~t' the'i-~utterrt~nts of internatl0l1al tracfe which 'is-~~ to gtow'ft1i't1il!r'as the country's economy m~s rurthet'1ptogte~8 2 ~'s&l'tffit!featur~!of the '}ijill-are-(i) the export-import bankwill functien as -the principal 'financial instit~tion for' financing, india,'s internatio,nal ' trade and' for coordinating the working of siinrar institutions and' will also undertake limited development and merchant banking ~nctions in relation to export oriented fndastrif!l! ; {ii) the export-import bank of iniia will be a statutory corporation fully owned by central government; add (iii) its resources wil mainly comprise of contributions from g6vemment in the form of grants and loans, jdbket borrowings, deposits of long term duration from the p1iillic aric;l short~terrn and long-term funds of the reserve bank of lildia, 3 the bill seeks to achieve the above objects notes on uih -apfiellilllld,to -the- biu explain in detail thevario\lsprovisions ,of tbe bill ·ltiiw~ '1~''21tn april/' 1981 i clause i-this clause deals with the extent and commencement of the act clawe 2-this clause seeks to define certain expressions in the bill special mention may be made about the deftnition of the expressions "export" and "import" the said expressions have been defined in a comprehensive manner so as to cover all types of export and import of goods of all description turnliey projects and construction contracts as well as all kinds of services, including consultancy services further, these expressions would also cover the activities of export or import not only from and into india but also the third countries in connection with the project exports clause 3-this clause seeks to provide for the establishment of the export-import bank of india with headquarters at bombay and also for the establishment of its offices and branches in or outside india clawe 4-this clause deals with the share capital and the ownership of the export-import bank it provides for an authorised capital of two hundred crores of rupees which may be increased by the central government to five hundred crores further, the issued capital shall be wholly subscribed by the central government clauses 5 and 6-these two clauses intl!r alia provide for the mana~t!ment of the export-import bank and tor the vesting of the aif&irs and business of that bank in a board of directors whose strength has been fixed at the maximwn of sixteen or seventeen, depending on the circwnstances as to whether the same person is appointed to function both as chairman and managing director or two persons are to be appointed separately in respect of the two aforesaid posts it may also be mentioned that provision has been made for the representation of the exporting community on the board clause 7-this clause empowers the board to constitute committees for such purposes as it may think fit clauses 8 and 9-while clause 8 seeks to provide for the payment of fees and allowances to directors and members of the committee, clause 9 provides for the disqualifications of a rlirector clause lo-this clause gives details of the functions which can be undertaken by the export-import bank of india apart {rom the normal banking functions connected with the export and import of goods, such as grant of loans and advances, issue of guarantees anti participation certi1icates etc, a dumber of other functions are proposed to be entrusted to tlwl~inipott bank,'iii k~ping with the iyn~ jole·it hiiti1!d play in the 'field of expor't'financingsuehfwicuou iri~' !) ;  i ( (a) ~g of expor~ from and importa~toddi onq' india, but also third countries of goods and services;  ,  , '(b) financing of joint ventures in foreign countries~ (c) financing· of export and import of mac~ '~aiul equipment on lease basis; and  (d) providing loans to an indian party so as'to enable' ' tb4t party to contribute in the share cap~tal of a joptt v~ture ~ a foreign country th~ ~port-import bank will also undertake limiter! merchantbarkjng functions such as under-writing of stocks, shares, bonds or ~ebentures of companies, engaged in the export or import and providing technical, administrative and financial assistariee to' parties in connection with export or import the exportldiport bank can also undertake the developing and financidi of export-oriented industries it is also proposed to entrust ~be export-import bank with the task of 'wldertaking transactions luvolving a combination of government-to-governinent and commercial credit for the purposes of export or import the bank will also give lines of credit to foreign governments and foreign financial institutions the export-import bank is alsoi>eing permitted to collaborate with similar institutions in developing countries by enabling it to participate in the share capital of such institutions in the role of the principal financial institution in the field of financing exports, it will give re-~ce to ~mmercial banks and financial institutions in respect of the loans and advances granted by them for the purpose of export and import claue8 11 and 12-clauses 11 and 12 respectively seek to provide fol' loans by the central government and borrowinsb :ancl acceptance of deposits by the export-import bank the central government is being authorised to grant a soft-loan ·of twenty crores af rupees to the bank which will be repayable in meen annual instalments after a moratorium of fifteen years, the rate of interest being five and a quarter per cent it is expected that the issued capital and the soft-term loan placed "'8t~ disposal of the export-import bank would give it funds '~quate· 'ed'ough to carry on its activities till such time as it is ·\,te tc{eam iruftlclent income for the purpose   ;~·l(r''''l 1 ': 1 i  ilj ;, like otberfinancial institutions, the export-import ~ -'woilltl also be able' to borrow' from the open rlu1rket thtou8h the issue of bonds and debentures besides, 1t will also' en'joy 'j'~:;~uw~~ accom~odation f~om t~e reserve ~ against (~ ~w,'iti~s  and )~~nt of bllls and pro~ nota ,~i~}~~¥ ~~ ~ ,cojllijlercial  an4 other transacti~ 'ill addition to the above, funds from the national mdusu-1a1 credit (long-term operations) }'und set up by the reserve badk of india at the time of the establishment of the industrial, development bank of india would also be available to the export-import 'bank for the purpose of its business clauses 13 and 14-while clause 13 enables the export-import bank to borrow foreign currency in or outside india for the purposes of its operations, clause 14 enables it to raise resources by acceptance of giits, grants, etc, either from government <ir any other sources clauses 15 to 20-these cla"lses inter alia deal with the establishment of a special fund to be called the export development fund which would be utilised mainly for the purposes of research, training, survey, market intelligence etc, in connection with the country's international trade as well as for financing proposals which are unlikely to be supported by banks and other financial institutions this is on the lines of the development assistance fund established by the industrial develop-inent bank of india the accounts of the export development fund would be maintained separately and would also be audited by statutory auditors and an annual report on its operations would be submitted to the central government cza~e 21-this clause seeks to provide for the maintenance of a general fund to which all other income earned by the export-import bank would be credited the general fund would be utilised by that bank for its normal operations claulte 22-this clause provides for the preparation of balance-sheet and profit and loss acc<7w1t of the export-import bank and closure of books and accounts as on the 31st december each year as in the case of commercial banks clause :l3-clause 23 provides that the export-import bank may establish a reserve fund to which may be transferred such sums as that bank may deem fit from out of the annual profits occurring to the general f'und it further provides that that bank shall, after making provision for bad and doubtful debts, depreciation of assets and for all other matters which are usually provided for by banks and for the reserve fund, transfer the balance of the net profits to the central government clause 24-this clause inter alia provides for the account of the export-import bank being audited by auditors duly qualified to act as such under the companies act, 1966 to be appointed by the central government the central government may also, at any time, appoint the comptroller and auditor-general to examine and report upon the account of the export-import bank 1-clause 25-this clause makes a saving provision to ediui'e that nothing contained in chapter vii except as otherwfst fovided for in 8ub-section () of aectlon l' shall apply 10 ttte export development fund clause 26-this clause provides for the transfer of the bwrineas of the development bank in so far as it relates to the export flnancing functions of that bank to the export-import bank such transfer will include all property, assets and liabilities rights, interest, privileges and obligations of what-'ever natl1r£ the consideration for such transfer shall be paid by,the export-import bank to the industrial development 'bank tn such manner and in such number of instalments as may be determined by the central government suitable provision hap also been made to cover cases of transfer to the export-import bank of functions which relate not only to the export financing functions of the development bank but allb to any of the other functions of that bank it has also been made clear that in case, any question arises as to whether any contract, deed bond, agreement, power of attorney, grant of legal repre!'lentation or other instrument referred to in subclause (3) or any suit, appeal or other proceeding referred to in sub-clause (4) relates or relates exclusively to the export financing functions of the development bank, it shall be referred to the central government whose decision thereon shall be final clause 27-clause 27 provides for the appointment of the staff by the export-import bank for the efficient performance of its functions it also ennbles the export-import bank to utilise, it'! consultation with the industrial development bank, such of its staff as have expe:-ience in export financing clause 28-this clause provides for the delegation of the powers and functions of the board under the act clause 29,-this clause makes it obligatory for the export-import bank to furnish from time to time returns to the central gclvernment clawlf> 30-this clause seeks to impose on the export-import bank the obligation not to divulge any information relating to or to the affairs of its constituents except in the circumstance~ stated in that clause it also provides for a declaration of fidelity and secrecy by the director member of a committee auditor or officer or other employee of the export-import bank or of the develpment bank whose services are utillsed by the export-import bank before entering upon his 'd\1ties clause 31-this clause is a usual provision to ensure defects  in appointments etc from invalidating the acts of the board or its committees -clause 32,-this clause enables the export-import b~nk to i appoint its nominees on the board of directors of the com- )lanies which are to be assisted by it it is also provided that by'rea!!on f)f hf'fn~ th~ nnminee!l nf that bank, the directors will not i~cur any obligation or liability for anything done fit omiifm'to"be done in good faith in the discharge of their dutftl u i " ' , ' such nominees ' clause 33-this clause seeks to indemnify the direetol' of the export-import bank against all losses and expenses 1i1curred, by him in or in relation to the discharge of his duties other than those caused by his own wilful act or default , clcwae 34--,thio;: clause is the usual provision relating io protection of rction taken in good faith " " clntbes 35 and 36-thc!'ie twc clauses seek to regulate the application of the bankers' books evidence act, 1891 and to a limited extent of the banking regulation act, 1949 to the export-import bank  cl4me 37-this clause pro'vides for the exemption of the export-import bank from payment of income tax and 811 other taxes on income, profits or gains and is on the lines of similar exemption given to the reserve bank nf india and to the industrial development bank of india claule 38,-:-'nlis clause ensures that no provision of a law ~e1~ting to thp wir,ding up of companies or corporationl1 shan apply to the export-import bank which shall not be placed in uquidation except by an order of the central government ctawe 39-thie clause seeks tn empower the board of directors 0f the export-tmport bank with the previous approval of the central government to make regulations not inconsistent with the act for the purpose of (!lying effect to the ~vislon6 of the act and in p8rti~u18r in respect of the matters speci1\ed in that clause dame 40-this clause !'lrovfdes for amendments to the reserve bank of india act 1934, the industrial disputer act, 1947 and the banking regulation ac:t, 1949 the amendments to the resej've bank of india act are mafnly consequential this win enllhle the reserve bank to j;trant fluitabl  accommodation tn the fxport-tmport bank from out of the national industrial credit (lon~-term opertions) fund the other amendments wip f_nable the reserve b_ ,to grant accommodation to tt>~ hport-troport bank agafn~t trustt"e sectl!rlties loanr and advance!': and pnrch!'\se of foreign~hange ffom the reserve'b"n~t of india f~~ the purpose'~f ita ftnancl~ 'ctivities t"e rec;pl'v~ bnnk of tnclir is also betn~ernpbweled n rrant shnrt;-tf"t'm 10fln!j, to the l;"cnnrt-tmport ~ theamendmettt to the inrlustriaj nisputes, act, 1m7, is"to j clartfy :that the apprpnriate go~r/lt'nent iurelatl(iq to • ny r }ndusuia1 ,di'u>ute ;'wolvwg the ~'"iport-import bank will be the' cf'ntral govpmme"t the ame!,<iment tr the bankin fr re!!ulatfon act lr 101' the l'urpoge of extend1nr; tl') tho:! export-tmpnrt bank the protectjoi\ " i ' against any demand by any tribunal or authority under the jd dustrial disputes act, 194'7 for disclosure of information regarding its inner reserves the other amendment prohibits the holcling of any agitation by the staff of the export-import bank within its premises;   l:laube 41-tius clause is the usual provision rela~ns to tbe making of an order by the centn:! government to re~o\;~ ~~y' dith4:wty that may arise in giving effect to the provisions ot~ act and its o~ration i6 limited to a period ot three years liolll the date of commencement of the act  c~ause 4 (1) provides that the export-import bank of india shall have an authorised capital uf two hundred crores of rupees pause 4 (2) provides that the bslled capital of the export-jmp9rt bank of india "hall be wholly subscribed by the oewtral government  it is proposed that a sum of fifty crores of rupees may be provided in the budget for 1981-82 for setting up the export-import bank of india a sum of twenty-five crores (jf rurees may have to be contributed by the central government annualjy from the years 1982-83 to 1987-8~ <:0 that the paid up capital is brought up to the hmit of the au1horised capital of two hundred crores of rupees f'urther contributions may have to b~ made as and when the authorised cavils1 i!; increased bey~nd rllpees two hundred crores by notification in the othcial gazette as provif1ed for under this clause, but the quantum and i;lhasfng of such contributions cannot be anticipn1c:d cit this stage clause 11 (a) provides for n loan of twenty crores of rupt>cs to the export-import bank of ir:dia from the central government at a rate of interest of five dnd a quarter per cent to be repaid in fifteen equal annual inc;talments, the repayment co:<1lmencing on the expiry of fifteen y('nr~ from the date of the receipt of the loan this loan of 1wenty crores of rupees is proposed to be given to the export-import bank of india in 1981-82 clause neb) provides for further sums of money by way of loans to the export-import bank of india from the cpntral government on such terms and conditions as may be agreed upon it may be necessary for that government from the year ]982-83 onwards to grant loans ranging from fifteen crores of rupees to twenty-five crores of rupees every year for a few years on such terms snd conditions as may be agreed upon clause 12(2) read with clause 12(1) (a) provides th~t the central government may, on a request being made by tl]e export-import bank of india, guarantee the bonds and debentures issued by that bank as to the repayment of orincipal and payment of interest at such rate as may be fixed by that gcvernment the extent of this contingent liabilltv wilt depend upon the size of the market borrowings of the 'exoott-import bank of india the exact quantum of which would be known only after the bank has started functioning clause 14 provides that the export-import bank of indfa may receive gifts, grants, donations or any benefactions from the central government it is not proposed at thts !ita1!e to make any contribution to the export-import bank of india under this provision   clause' 15 provides for the establishment of aneqmitt ot!velopplent f:!-md clause 16(a) provides that all olmounts by way of loans gifts grants, donations or benefactions' from government' or any other source in india or elsewhere would' be credited to the export development fund even though no loans or grants are proposed to be given' by the central government to the fund in the year 1981-82 loans and grants ~re proposed to be provided to the fund in later years d~d; ing upon the requirements of the fund no other provision of this bill involves any other expctiditure of a recurring or non-recurring nature from out of the consolidated fund of india plause 39 ot the, bill jlrovides that the board of directors of ~e ~rt-lmport bank of india may, with the prmous appj;'oval of the central government, make regultions nat ~codai8tent with the act for giving effect to the provisions of ~ ¥t which inter alia relate to the following matters, ~~:-(a) the times and places of the meetings of the board or of any committee constituted under the act and the proc~dure to be followed at such meetings, including the quorum necessary for the transaction of business; (b) the fees and allowances that may be paid to the directors and the members of a committee: (c) the form and manner in which the balance-sheets and the account of the export development fund and the export-import bank shall be prepared; (d) the duties and conduct and the terms and conditions of service of officers and other employees of the export-import bank: (e) the establishment and maintenance of provident fund or any other fund for the benefit of the officets and other employees of the export-import bank 2 clause 41 of the bill empowers the central government to removp by order and difficulty which may arise in giving effect to the provisions of the act this is by way of abundant caution and for covering difficulties which it is not practicable to visualise 3 as the matters with respect to which i:qbulations may be made under clause 39 pertain to matters of procedure or detail and as the matters with respect to which orders may be made under clause 41 pertain to matters which it is not praeticable to visualise at this stage, the delegation of legislative power is of normal chlilracter  annexure extrac'l'i!! from the reserve bank of india a'ct, 1934- (2 of 1934) - - - - - 2 in this act, unless there is anything repugnant in the subject or context,-defini_ tions - (a) "agricultural operations" includes animal husbandry, dairy and poultry farming, pisciculture and other allied activities, whether or not undertaken jointly with agricultural operations; - - - - - business which the bank may transact 17 the bank shall be authorised to carryon and transact the several kinds of business hereinafter specified, namely:-- - - - - - (4g) the making of loans and advances to, and the purchasing of bonds and debentures of, the development b:mk out of the national industrial credit (long term operations) fund established under section 46c; - - - - - - - (4-1' the making to scheduled banks, the development bank, the industrial finance corporat:on and any other financial institution as m,y, on the recommendation of the bank, be approved in this behalf by the central government of loans and advances repayable on demand or otherwise and against such security and on such other terms and cond:tions as may be approved in this behalf by the central board for the purpose of enabling such banks, or finandal institution, as the case may be, to purchase foreign exchange from the bank for the purpose of financing the import of capital goods or for such other purposes as may be approved by the central government - - - - - 42 (1) every bank included in the second schedule shall mainta:n with the bank an average daily balance the amount of which shall not be less than three per cent of the total of the demand and time liabilities in india 01 such bank as shown in the return referred to in sub-section (2): cash reserves of scheduled 'janbto be kept with the bank provided that the bank may, by notification in the gazette of india increase the said rate to such higher rate as may be specified in the notification so however that the rate shall not be more than ftfteen per cent of the total of the demand and time liabilities e3lj)1anatiofl-for the purposes of this section,-'     (c) "liabilities" shall not include-- - - - - - (ii) the amount of any loan taken from the bank or from the development bank or from the agricultural refinance and development corporation, - - - - - - 46c (1) - - - - - national industrial credit (lon, term operations) fund (2) the amount in the said fund shall be applied by the bank only to the following objects, namely:-- - - - - - (b) the purchasing of bonds and debentures issued by the development bank, - - - - - -  extracts from the industrial disputes a'et, 1947(14 of 1947) - - - - - - oefinitions, 2 in this act, unle~~ there is anything rep'llgnant in the subject or context-- - - - - - 10 of 5 of 4 of 3801 - - (bb) "banking company" means a banking company as defined in section 5 of the banking companies act, 1949, having branches or other e!'ltablishments in more than one state, and includes the industrial development bank of india, the reserve bank o'f india, the state bank of india, a corresponding new bank constituted under section 3 of the banking companies (acquisition and transfer of undertakings) act, 1970, a corresponding new bank consftuted under section 3 of the banking compani'es (acquisition and transfer of undertakings) act, 1980, and any subsidiary bank as defined in the state bank of india (subsidiary banks) act, 1959; - - - -  extracts from the banking regulation act, 1949cash reserve, (10 of 1949) - - - - - 18, every banking company, not being a scheduled bank, shall ma'ntain in india, by way of cash reserve with itself or 'n current account opened with the reserve bank or the state bank of india or any other bank notified by the central government in this be-ulf or part~ in oash with ,itseu and partly in such account or accowlts, a sum equivalent, to at least ,~hree per cent of the total of its time and demand liabilities in india, and shall submit to the reset'\ie bank before the fifteenth day 01 ~ry month a return howing the amount so held on friday - 26 of 1881 b~ each week of thepr~eding month with particulars of its time and 'demand liabilities in india on each such friday or 'f fri ' , 1 any such 'day is a public holiday under the negotiable instruments act, 1881, at the close of business on the preceding working day explanattion-in this section and in section 24, "liabilities in india" shall not include-•• - - - - - 2 of 1334 (b) any advance taken from the reserve bank or from the state bank of india or from the' industrial development bank of india or from the agricultural refinance corporation or from any bank notified by the central goverrment under clause (c) of the explanation to subsectbn (1) of section 42 of the reserve bank of india act, 1934 - - '" '" - - ma (1) '" '" - - production of document of confidential nature 3 of 1970 21 of 1976 40 of 1980 (3) for the purposes of this section, "banking company" indudes the industrial development bank of india, the reserve bank, the state bank of india a corresponding new bank constituted under section 3 of the banking companies (acquisition and transfer of undertakings) act, 1970, a regional rural bank established under section 3 of the regional rural banks act, 1976, a corresponding new bank constituted under ~ection 3 of the banking companies (acquisition and transfer of undertakings) act, 1980, and any subsidiary bank '" '" '"  '" '" 5 of 1970 punishm::'nts for certain activities in relation to banking companies 21 of 1976 40 of 1980 3had (1)  '" '" (3) for the purposes of this section "banking company" includes the reserve bank, the industrial development bank of india, the statc i3a;1k of india, a corresponding new bank constituted under '3ection 3 of the banking companie;; (acquisition and tran~fer of undertakings) act, 1970, a hegional rural bank established under section 3 of the regional rural banks act, 1976, a corresponding new bank constituted under section 3 of the banking companies (acquisition and transfer of undertaking'3) act, 1980, and any subsidiary bank '" '" '" '" '" '" 56 the provisions of this act, as in force for the time being, shall apply to, or in relation to, co-operative societ~es as they apply to, or in relation to, banking companies subject to the following modfications, namely:-act to apply to co-operative societle, '" '" '" '" - '" sub~~t to modificationa (j) for section 18, the following section shall be substituted, namely:-cash reserve '18 every co-operative bank, not being a state co-operative bank for the time being included in the second schedule to the reserve bank of india act, 1934, shall maintain in india, by way of cash reserve with itself or in current account opened with the reserve bank or the state bank of india or the state cooperative bank of the state concerned or with any other bank notified by the central government in this behalf or, in the case of a primary co-operative bank, with the central co-operative bank of the d·strict concernerl or partly in cash with itself and partly in such arcount or accounts, a sum equivalent to at least three per cent of the total of its time and demand liabilities in india, and shall submit to the reserve bank before the 15th day of every month a return showing the amount so held on friday of each week of the preceding month with particulars of its time and demand liabilities in india on each such friday, or, if any such friday is a public holiday under the negotiable inc;truments act, 1881, at the close of business on the preceding working day explanation-in this section and section 24 "liabilities in india" ~hall not include,-  oil    2 of j 034  - (b) any advance taken from a state government, the reserve bank, the state bank of india, the industrial development bank of india, the agricultural refinance corporation or any bank notified by the central government under clause (c) of the explanation to sub-section (1) of section 42 of the reserve bank of india act, 1934; -   - -  , billto establish a corporation to be known as the export-import bank of india for providing financial assistance to e:cporters and importers, and for functioning as the principal financial institution for co-ordinating the working of institutions engaged in financing erport and import of goods and services '»ith a view to promoting the country's international trade and for matters connected the~with or incidental thereto (shri r venkataraman, minister of finance) 