Section 26 of THE EMPLOYEES’ STATE INSURANCE ACT, 1948
- (1)All contributions paid under this Act and all other moneys received on behalf of the Corporation shall be paid into a fund called the Employees’ State Insurance Fund which shall be held and administered by the Corporation for the purposes of this Act.
- (2)The Corporation may accept grants, donations and gifts from the Central or any State Government, *** local authority, or any individual or body whether incorporated or not, for all or any of the purposes of this Act. 3[(3) Subject to the other provisions contained in this Act and to any rules or regulations made in this
behalf, all moneys accruing or payable to the said Fund shall be paid into the Reserve Bank of India or
such other bank as may be approved by the Central Government to the credit of an account styled the account of the Employees’ State Insurance Fund.]
- (4)Such account shall be operated on by such officers as may be authorised by the Standing Committee with the approval of the Corporation.
27. [Grant by the Central Government.] Omitted by the Employees’ State Insurance (Amendment)
Act, 1966 (44 of 1966) s. 12 (w.e.f. 17-6- 1967).
Summary
- All money received by the Corporation, including worker and employer contributions, must be put into the Employees’ State Insurance Fund.
- The Corporation is responsible for holding and managing this Fund to carry out the goals of the Act.
- The Corporation is allowed to accept gifts, grants, or donations from the government, local authorities, or any individual.
- All money that belongs to the Fund must be deposited into the Reserve Bank of India or another bank that the Central Government approves.
- The official name for this bank account is the Account of the Employees’ State Insurance Fund.
- Only specific officers who are authorized by the Standing Committee and approved by the Corporation can use the money in this account.
Practical examples
FAQ
1. Where is the money for the ESI scheme kept under Section 26 of the ESI Act, 1948?
The money is kept in the Employees’ State Insurance Fund, which is deposited in the Reserve Bank of India or a bank approved by the Central Government.
2. Who is allowed to handle the money in the Fund according to Section 26 of the 1948 Act?
Only officers who have been authorized by the Standing Committee and approved by the Corporation can operate the Fund’s bank account.
3. Can the Corporation accept donations from private people under Section 26 of the Employees’ State Insurance Act, 1948?
Yes, the Corporation can accept gifts and donations from individuals or groups to help fund the activities of the Act.
Test yourself
Q1.Under Section 26 of the Employees’ State Insurance Act, 1948, who is responsible for holding and administering the Employees’ State Insurance Fund?
Q2.According to Section 26 of the 1948 Act, which bank must approve any bank that is used for the Fund if it is not the Reserve Bank of India?
Q3.Under Section 26 of the Employees’ State Insurance Act, 1948, what is the official name of the account where the Fund's money is kept?
Q4.Under Section 26 of the ESI Act, 1948, whose approval is needed for an officer to operate the Fund's account after they are authorized by the Standing Committee?