Section 45 of The Deposit Insurance and Credit Guarantee Corporation Act, 1961
Power of Central Government to give directions.
In the discharge of its functions under this Act, the Corporation shall be guided by such directions in matters of policy involving public interest as the Central Government may after consulting the Reserve Bank give to it in writing, and if any question arises whether the directions relates to a matter of policy involving public interest, the decision of the Central Government thereon shall be final.
Summary
- The Central Government can give written directions to the Corporation on policy matters that involve public interest.
- The Corporation must follow these written directions when carrying out its duties.
- Before giving any such written directions, the Central Government must consult with the Reserve Bank of India.
- If there is any disagreement or question about whether a direction actually involves public interest, the Central Government's decision is final.
Practical examples
FAQ
1. In what form must the Central Government's directions be given to the Corporation?
The directions must be given in writing.
2. Is the Central Government required to consult anyone before issuing these policy directions?
Yes, the Central Government must consult the Reserve Bank of India before giving directions in writing.
3. Who has the final say on whether a government direction relates to public interest?
The Central Government has the final say, and its decision is absolute.
Test yourself
1.Under Section 45 of The Deposit Insurance and Credit Guarantee Corporation Act, 1961, whose policy directions must guide the Corporation in discharging its functions?
2.Under Section 45 of The Deposit Insurance and Credit Guarantee Corporation Act, 1961, whom must the Central Government consult before giving written directions to the Corporation?
3.Under Section 45 of The Deposit Insurance and Credit Guarantee Corporation Act, 1961, if a question arises about whether a government direction actually relates to a matter of policy involving public interest, whose decision is final?
4.Under Section 45 of The Deposit Insurance and Credit Guarantee Corporation Act, 1961, how must the Central Government convey its directions to the Corporation?