SMALL INDUTRIES DEVELOPMENT ASSISTANCE FUNDCentral

Section 22 of The Small Industries Development Bank of India Act, 1989

To the Small Industries Development Assistance Fund shall be credited--

(a)all amounts received for the purpose of that Fund by way of loans, gifts, grants, donations, benefactions or otherwise from Government or any other source;
(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 Fund; and
(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 23.

Summary

Money received specifically for the Fund as loans, gifts, grants, or donations gets credited here.
When the bank grants loans or advances from this Fund, the repayments and recoveries go back into it.
Any income or profits made from investing the Fund's money are added back to the Fund.
Section 23 explains that this money is then spent or disbursed only for purposes the Central Government specifies based on the Board's recommendation.
Any interest earned from applying the money under Section 23 also gets credited to the Fund.

Practical examples

1A philanthropic organization donates two million rupees specifically intended for the Assistance Fund. Under Section 22, this money is credited directly into the Fund.

2The bank uses the Fund to grant a loan to a small factory. When the factory repays the loan with fifty thousand rupees in interest, both the repayment and the interest are credited back into the Assistance Fund.

FAQ

1. Do loan repayments go into the general bank accounts or the special Fund?

If the loan was granted from the Small Industries Development Assistance Fund, the repayments go back into that same Fund.

2. What happens to profits made from investing the Fund's money?

Income or profits from investments made from the Fund are credited right back to the Fund.

3. Who decides how the money in the Fund is eventually spent?

Under Section 23, the Central Government specifies the purposes, based on the Board's recommendation.

Test yourself

Q1.Under Section 22 of The Small Industries Development Bank of India Act, 1989, which of the following is credited to the Small Industries Development Assistance Fund?

Q2.Under Section 22 and Section 23 of The Small Industries Development Bank of India Act, 1989, how does the application of the Fund generate further credits?

Q3.Under Section 22 of The Small Industries Development Bank of India Act, 1989, what happens to profits from investments made using money from the Assistance Fund?

Q4.Under Section 22 of The Small Industries Development Bank of India Act, 1989, from where can the Fund receive gifts and donations?

21PreviousSection 21 Small Industries Development Assistance Fund.23NextSection 23 Utilisation of Small Industries Development Assistance Fund.

←Section 21 Section 23→