Section 23 of The Small Industries Development Bank of India Act, 1989
The Small Industries Bank may disburse or spend from the Small Industries Development Assistance Fund, any amount for such purposes as the Central Government may, on the recommendation of the 1[Board], specify.
Summary
- This section controls how the money in the Small Industries Development Assistance Fund is used.
- The Small Industries Bank can disburse or spend money from this Fund.
- The bank cannot spend the money on just anything.
- The purposes for spending must be specified by the Central Government.
- The Central Government makes these decisions based on the recommendation of the Board.
Practical examples
FAQ
1. Can the bank independently decide how to spend the Assistance Fund?
No, the bank can only spend the money for purposes specified by the Central Government.
2. Does the Central Government act alone in deciding how the Fund is used?
No, the Central Government specifies the purposes on the recommendation of the Board.
3. What action does the bank take once the purpose is specified?
The bank may disburse or spend the amount from the Fund for those specified purposes.
Test yourself
Q1.Under Section 23 of The Small Industries Development Bank of India Act, 1989, who has the final authority to specify the purposes for which the Small Industries Development Assistance Fund may be utilized?
Q2.Under Section 23 of The Small Industries Development Bank of India Act, 1989, what role does the Board play in the utilization of the Fund?
Q3.Under Section 23 of The Small Industries Development Bank of India Act, 1989, what actions can the Small Industries Bank take with the Fund once a purpose is specified?
Q4.Under Section 23 of The Small Industries Development Bank of India Act, 1989, could the bank use the Assistance Fund to pay out shareholder dividends?