Section 31 of The Deposit Insurance and Credit Guarantee Corporation Act, 1961 in hindi
After making provisions for all its liabilities and for all other matters for which provision is necessary or expedient, including any contribution to the staff and super annuation funds, the Corporation shall transfer the balance, if any, of its income in its General Fund to one or more reserve funds to be utilised in such manner and for such purposes as the Corporation may deem fit.
Summary
- The Corporation must first make provision for all of its outstanding liabilities and other necessary or practical matters.
- These mandatory provisions must include contributions to the staff and superannuation (retirement) funds.
- After all necessary provisions are made, any remaining balance of income in the General Fund must be transferred.
- This surplus balance is transferred to one or more reserve funds.
- These reserve funds can be utilised in any manner and for any purposes that the Corporation thinks fit.
Practical examples
FAQ
1. What must the Corporation do before transferring General Fund surplus to a reserve fund?
The Corporation must first make full provision for all its liabilities and all other necessary or expedient matters, including staff and superannuation fund contributions.
2. From which fund is the surplus income transferred?
The surplus income is transferred from the General Fund.
Test yourself
Q1.Under Section 31 of The Deposit Insurance and Credit Guarantee Corporation Act, 1961, which cross-references the funds established under Section 22 of the same Act, from which specific fund must the Corporation transfer surplus balance to its reserve funds?
Q2.According to Section 31 of The Deposit Insurance and Credit Guarantee Corporation Act, 1961, which of the following is specifically named as a priority provision that must be made before transferring surplus income?
Q3.Under Section 31 of The Deposit Insurance and Credit Guarantee Corporation Act, 1961, who decides the manner and purposes for which the reserve funds are utilised?
Q4.Under Section 31 of The Deposit Insurance and Credit Guarantee Corporation Act, 1961, what must the Corporation do if its General Fund has no remaining balance of income after meeting all liabilities and provisions?