Section 18 of The Prasar Bharati (Broadcasting Corporation of India) Act, 1990
- (1)The Corporation shall have its own Fund and all the receipts of the Corporation (including the amounts which stand transferred to the Corporation under section 16) shall be credited to the Fund and all payments by the Corporation shall be made therefrom.
- (2)All moneys belonging to the Fund shall be deposited in one or more nationalised banks in such manner as the Corporation may decide.
- (3)The Corporation may spend such sums as it thinks fit for performing its functions under this Act and such sums shall be treated as expenditure payable out of the Fund of the Corporation. Explanation.--For the purposes of this section, "nationalised bank" means a corresponding new bank specified in the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970(5 of 1970) or a corresponding new bank specified in the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980(40 of 1980).
Summary
- The Corporation manages its own separate Fund where all its money is kept.
- Any money the Corporation receives must go into this Fund.
- This includes the value of older government broadcasting assets and debts that were legally transferred to the Corporation when it was created.
- All payments made by the Corporation come out of this Fund.
- The money must be stored in one or more nationalised banks.
- The Corporation has the power to spend its money however it sees fit to carry out its legal duties.
Practical examples
FAQ
1. Can the Corporation use private, foreign banks for its main accounts?
No, the law says the money must be deposited in one or more nationalised banks.
2. What happens to the money Doordarshan had before the Corporation was created?
Any funds and assets transferred from the government's old broadcasting services are credited straight into the Corporation's new Fund.
3. Who decides what the Corporation spends its money on?
The Corporation itself decides. It can spend sums as it thinks fit to perform its functions under the Act.
Test yourself
Q1.Under Section 18 of The Prasar Bharati (Broadcasting Corporation of India) Act, 1990, where must the Corporation deposit all the money belonging to its Fund?
Q2.Under Section 18 of The Prasar Bharati (Broadcasting Corporation of India) Act, 1990, combined with Section 16, what happens to money that was owed to the government for radio services before the Corporation was formed?
Q3.Under Section 18 of The Prasar Bharati (Broadcasting Corporation of India) Act, 1990, what limit does the law place on how the Corporation spends its money?
Q4.Under Section 18 of The Prasar Bharati (Broadcasting Corporation of India) Act, 1990, what is the source of the money used to make payments on behalf of the Corporation?