Section 24 of The Small Industries Development Bank of India Act, 1989
- (1)To the Small Industries Development Assistance Fund shall be debited--
- (a)such amounts as may from time to time be disbursed or spend under section 23;
- (b)such amounts as may be required for discharging the liabilities in respect of loans received for the purpose of that Fund;
- (c)any loss arising on account of investment made out of that Fund; and
- (d)such expenditure arising out of, or in connection with, the administration and application of that Fund as may be determined by the Board.
- (2)No amount shall be debited to the Small Industries Development Assistance Fund except as provided for in sub-section (1).
Summary
- This provision lists exactly what can be paid out or deducted from the Assistance Fund.
- Money can be taken out to pay for specific purposes that the Central Government approves based on the Board's recommendation, as stated in Section 23.
- Money can also be used to repay loans taken specifically for this fund.
- Any losses from investments made using the fund's money are deducted from it.
- The Board can decide to deduct the costs of managing and running the fund.
- No other money can be taken out of this fund for any other reason.
Practical examples
FAQ
1. Can the bank use this fund to pay for everyday office electricity bills?
Only if the Board determines those bills are part of the specific expenditure for administering this fund. Otherwise, everyday bank expenses cannot be deducted from it.
2. What happens if the bank wants to spend the fund on a new development program?
Under Section 23, the Central Government must specify the purpose for the spending based on a recommendation from the Board. If approved, the money can be disbursed under this section.
3. Is there any flexibility to use the fund for unauthorized emergencies?
No, the law strictly states that no amounts can be debited except for the specific reasons listed in this section.
Test yourself
Q1.Under Section 24 of The Small Industries Development Bank of India Act, 1989, which of the following is an allowed deduction from the Small Industries Development Assistance Fund?
Q2.Under Section 24 of The Small Industries Development Bank of India Act, 1989, read with Section 23, who determines the specific purposes for which money can be disbursed from the fund?
Q3.Under Section 24 of The Small Industries Development Bank of India Act, 1989, can the bank make deductions from the Assistance Fund for reasons not listed in the text?
Q4.Under Section 24 of The Small Industries Development Bank of India Act, 1989, who determines the expenditure connected with the administration of the fund?