Export-Import Bank of India Act, 1981- Sections 18 to 41 and Schedules

18. Debits to Export Development Fund.

18. Debits to Export Development Fund.—(1) To the Export Development Fund shall be debited—

(a) such amounts as may from time to time be disbursed or spent under sub-section (1) of Section 17;

(b) such amounts as may be required for discharging the liabilities in respect of loans received for the purposes 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 the Fund as may be determined by the Board.

(2) No amount shall be debited to the Export Development Fund except as provided for in sub-section (1).

19. Accounts and audit of Export Development Fund.

19. Accounts and audit of Export Development Fund.—(1) The balance-sheet and accounts of the Export Development Fund shall be prepared in such form and manner as may be prescribed.

(2) The Board shall cause the books and accounts of the Export Development Fund to be closed and balanced as on the 31st day of December [i][or such other date in each year as the Central Government may, by notification in the Official Gazette, specify].

(3) The Export Development Fund shall be audited by one or more auditors appointed by the Central Government under Section 24 who shall make a separate report thereon.

(4) The provisions of sub-sections (2), (3), (4) and (6) of Section 24 shall, so far as may be, apply in relation to the audit of the Export Development Fund.

(5) The Exim Bank shall furnish to the Central Government, within four months from the date on which the accounts of the Export Development Fund are closed and balanced, a copy of the balance-sheet and accounts together with a copy of the auditors’ report and a report on the operation of the Fund during the relevant year and the Central Government shall, as soon as may be after they are received by it, cause the same to be laid before each House of Parliament:

[ii][Provided that with a view to facilitating the transition from one period of accounting to another period of accounting under this sub-section, the Central Government may, by order published in the Official Gazette, make such provisions as it considers necessary or expedient for the closing and balancing of, or for other matters relating to, the books or accounts in respect of the concerned years.]

20. Liquidation of Export Development Fund.

20. Liquidation of Export Development Fund.—The Export Development Fund shall not be closed or wound up save by order of the Central Government and in such manner as the Government may direct.

Chapter VII

GENERAL FUND, ACCOUNTS AND AUDIT

21. General Fund.

21. General Fund.—All receipts of the Exim Bank other than those which are to be credited to the Export Development Fund under this Act shall be credited to a Fund to be called the General Fund and all payments by the Exim Bank, other than those which are to be debited to the Export Development Fund, shall be made out of the General Fund.

Other Contents of Export-Import Bank of India Act, 1981​
Sections 1 to 17 Sections 18 to 41 and Schedules

22. Preparation of accounts and balance-sheet.

22. Preparation of accounts and balance-sheet.—(1) The balance-sheet and accounts of the Exim Bank shall be prepared in such form and manner as may be prescribed.

(2) The Board shall cause the books and accounts of the Exim Bank to be closed and balanced as on the 31st day of December [iii][or such other date in each year as the Central Government may, by notification in the Official Gazette, specify]:

[iv][Provided that with a view to facilitating the transition from one period of accounting to another period of accounting under this sub-section, the Central Government may, by order published in the Official Gazette, make such provisions as it considers necessary or expedient for the closing and balancing of, or for other matters relating to, the books or accounts in respect of the concerned years].

23. Disposal of profits accruing to General Fund.

23. Disposal of profits accruing to General Fund.—(1) The Exim Bank may establish a Reserve Fund to which may be transferred such sums as the Bank may deem fit out of the annual profits accruing to the General Fund.

(2) After making provision for bad and doubtful debts, depreciation of assets and for all other matters for which provision is necessary or expedient or which is usually provided for by bankers and for the Reserve Fund referred to in sub-section (1), the Exim Bank shall transfer the balance of the net profits to the Central Government.

24. Audit.

24. Audit.—(1) The accounts of the Exim Bank shall be audited by auditors duly qualified to act as auditors under sub-section (1) of Section 226 of the Companies Act, 1956 (1 of 1956), who shall be appointed by the Central Government for such term and on such remuneration as the Central Government may fix.

(2) The auditors shall be supplied with a copy of the annual balance-sheet of the Exim Bank and it shall be their duty to examine it together with the accounts and vouchers relating thereto and they shall have a list delivered to them of all books kept by the Exim Bank and shall at all reasonable times have access to the books, accounts, vouchers and other documents of the Exim Bank.

(3) The auditors may, in relation to such accounts, examine any director or any officer or other employee of the Exim Bank and shall be entitled to require from the Board or officer or other employee of the Exim Bank such information and explanation as they may think necessary for the performance of their duties.

(4) The auditors shall make a report to the Exim Bank upon the annual balance-sheet and accounts examined by them and in every such report they shall state whether in their opinion the balance-sheet is a full and fair balance-sheet containing all necessary particulars and properly drawn up so as to exhibit a true and fair view of the state of affairs of the Exim Bank and in case they had called for any explanation or information from the Board or any officer or other employee of the Exim Bank whether it has been given and whether it is satisfactory.

(5) The Exim Bank shall furnish to the Central Government within four months from the date on which its accounts are closed and balanced, a copy of its balance-sheet and accounts together with a copy of the auditors’ report and a report of the working of the Exim Bank during the relevant year, and the Central Government shall, as soon as may be after they are received by it, cause the same to be laid before each House of Parliament.

(6) Without prejudice to anything contained in the preceding sub-sections, the Central Government may, at any time, appoint the Comptroller and Auditor-General of India to examine and report upon the accounts of the Exim Bank and any expenditure incurred by him in connection with such examination and report shall be payable by the Exim Bank to the Comptroller and Auditor-General of India.

25. Saving.

25. Saving.—Save as otherwise provided in sub-section (4) of Section 19, nothing contained in the Chapter shall apply to the Export Development Fund.

Chapter VIII

TRANSFER OF PART OF BUSINESS OF DEVELOPMENT BANK

26. Transfer of part of business of Development Bank.

26. Transfer of part of business of Development Bank.—(1) On such date as the Central Government may, by notification, appoint, all business, property, assets and liabilities, rights, interests, privileges and obligations of whatever nature of the Development Bank insofar as they relate to the export financing functions of that Bank shall stand transferred to, and vest in, the Exim Bank.

(2) For the transfer to, and vesting in, the Exim Bank under sub-section (1), the Exim Bank shall pay to the Development Bank such amount in such manner and in such number of instalments as may be determined by the Central Government.

(3) All contracts, deeds, bonds, agreements, powers-of-attorney, grants of legal representation and other instruments of whatever nature of the Development Bank which relate to the export financing functions of that Bank and which are subsisting or having effect immediately before the date referred to in sub-section (1) and to which the said Bank is a party or which are in favour of that Bank shall,—

(a) if they relate exclusively to the export financing functions of that Bank, be of full force and effect against or in favour of the Exim Bank, as the case may be, and may be enforced and acted upon as fully and effectively as if instead of the Development Bank the Exim Bank had been a party thereto or as if they had been issued in favour of the Exim Bank; and

(b) if they relate not only to the export financing functions of the Development Bank but also to any of the other functions of that Bank, be of full force and effect against or in favour of both the Development Bank and the Exim Bank and may be enforced or acted upon as fully and effectively as if in addition to the Development Bank the Exim Bank had also been a party thereto or as if they had been issued in favour of the Development Bank and also the Exim Bank.

(4) If, on the date referred to in sub-section (1), any suit, appeal or other legal proceeding of whatever nature relating to the export financing functions of the Development Bank is pending, the same shall not abate, be discontinued or be in any way prejudicially affected by reason of the transfer to the Exim Bank of the business of the Development Bank or of anything contained in this Act, but the suit, appeal or other proceeding may,—

(a) where it relates exclusively to the export financing functions of the Development Bank, be continued, prosecuted and enforced by or against the Exim Bank; and

(b) where it relates not only to the export financing functions of the Development Bank but also to any of the other functions of that Bank be continued, prosecuted and enforce by or against the Development Bank and the Exim Bank or, if the Central Government by special order in writing so directs, by or against such one of the said two Banks, as may be specified in such order.

(5) If any question arises as to whether any contract, deed, bond, agreement, powers-of-attorney, grant of legal representation or other instrument referred to in sub-section (3) or any suit, appeal or other legal proceeding referred to in sub-section (4) relates or relates exclusively to the export financing functions of the Development Bank it shall be referred to the Central Government for decision and the decision of the Central Government thereon shall be final.

(6) The provisions of this section shall have effect notwithstanding anything contained in the Industrial Development Bank of India Act, 1964 (18 of 1964), or any other law or any instrument having force by virtue of the said Act or other law.

Chapter IX

MISCELLANEOUS

27. Staff of Exim Bank.

27. Staff of Exim Bank.—(1) The Exim Bank may appoint such number of officers and other employees as it considers necessary or desirable for the efficient performance of its functions and determine the terms and conditions of their appointment and service.

(2) Without prejudice to the provisions of sub-section (1), it shall be lawful for the Exim Bank to utilise, and for the Development Bank to make available the services of, such staff of the Development Bank having experience relating to export financing functions on such terms and conditions as may be agreed upon between the Exim Bank and the Development Bank.

(3) The duties and conduct, terms and conditions of service and the establishment and maintenance of a provident Fund or any other Fund for the benefit of the officers and others employees of the Exim Bank shall be such as may be prescribed.

28. Delegation of powers.

28. Delegation of powers.—The Board may, by general or special order, delegate to any director or any officer or other employee of the Exim Bank, subject to such conditions and limitations, if any, as may be specified in the order, such of its powers and functions under this Act as it may deem necessary.

29. Returns.

29. Returns.—The Exim Bank shall furnish, from time to time, to the Central Government such returns as the Central Government may require.

30. Obligation as to fidelity and secrecy.

30. Obligation as to fidelity and secrecy.—(1) The Exim Bank shall not, except as otherwise required by this Act or any other law, divulge any information relating to, or to the affairs of, its constituents except in circumstances in which it is, in accordance with the law or practice and usage customary among bankers, necessary or appropriate for the Exim Bank to divulge such information.

(2) The Exim Bank may for the purpose of efficient discharge of its functions under this Act, collect from, or furnish to, the Central Government, the Development Bank or any scheduled bank or such other financial institution, as may be notified in the Official Gazette by the Central Government in this behalf, credit information or other information as it may consider useful for the purpose, in such manner and at such times, as it may think fit.

Explanation.—For the purpose of this sub-section, the expression “credit information” shall have the same meaning as in clause (c) of Section 45-A of the Reserve Bank of India Act, 1934 (2 of 1934), subject to the modification that “banking company” referred to therein shall mean the Development Bank, any scheduled bank or other financial institution as aforesaid.

(3) Every director, member of a committee, auditor or officer or other employee of the Exim Bank or of the Development Bank whose services are utilised by the Exim Bank under the provisions of this Act, shall, before entering upon his duties, make a declaration of fidelity and secrecy in the form set out in the First Schedule.

[v][(4) Nothing contained in this section shall apply to the credit information disclosed under the Credit Information Companies (Regulation) Act, 2005.]

31. Defects in appointments not to invalidate acts, etc.

31. Defects in appointments not to invalidate acts, etc.—(1) No act or proceeding of the Board or of any committee of the Exim Bank shall be questioned on the ground merely of the existence of any vacancy in or defect in the constitution of, the Board or the committee, as the case may be.

(2) No act done by any person acting in good faith as a director shall be deemed to be invalid merely on the ground that he was disqualified to be a director or that there was any other defect in his appointment.

32. Arrangement with Exim Bank on appointment of directors to prevail.

32. Arrangement with Exim Bank on appointment of directors to prevail.—(1) Where any arrangement entered into by the Exim Bank with a company provides for the appointment by the Exim Bank of one or more directors of such company, such provision and any appointment of directors made in pursuance thereof shall be valid and effective notwithstanding anything to the contrary contained in the Companies Act, 1956 (1 of 1956), or in any other law for the time being in force or in the memorandum, articles of association or any other instrument relating to the company, any provision regarding share qualification, age limit, number of directorship, removal from office of directors and such like conditions contained in any such law or instrument aforesaid, shall not apply to any director appointed by the Exim Bank in pursuance of the arrangement as aforesaid.

(2) Any director appointed as aforesaid shall—

(a) hold office during the pleasure of the Exim Bank and may be removed or substituted by any person by order in writing of the Exim Bank;

(b) not incur any obligation or liability by reason only of his being a director or for anything done or omitted to be done in good faith in the discharge of his duties as a director or anything in relation thereto;

(c) not be liable to retirement by rotation and shall not be taken into account for computing the number of directors liable to such retirement.

33. Indemnity of directors.

33. Indemnity of directors.—(1) Every director shall be indemnified by the Exim Bank against all losses and expenses incurred by him, in, or in relation to, the discharge of his duties, except such as are caused by his own wilful act or default.

(2) A director shall not be responsible for any other director or for any officer or other employee of the Exim Bank or for any loss or expenses resulting to the Exim Bank from the insufficiency or deficiency of the value of, or title to any property or security acquired or taken on behalf of the Exim Bank or the insolvency or wrongful act of any debtor or any person under obligation to the Exim Bank or anything done in good faith in the execution of the duties of his office or in relation thereto.

34. Protection of action taken in good faith.

34. Protection of action taken in good faith.—No suit or other legal proceeding shall lie against the Exim Bank or any director or any officer or other employee of the Exim Bank or any other person authorised by the Exim Bank to discharge any functions under this Act for any loss or damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of this Act or any other law or provision having the force of law.

35. Act 18 of 1891 to apply in relation to Exim Bank.

35. Act 18 of 1891 to apply in relation to Exim Bank.—The Bankers’ Books Evidence Act, 1891 shall apply in relation to the Exim Bank as if it were a Bank as defined in Section 2 of that Act.

36. Section 34-A and Section 36-AD only of Act 10 of 1949 to apply to Exim Bank.

36. Section 34-A and Section 36-AD only of Act 10 of 1949 to apply to Exim Bank.—Nothing contained in the Banking Regulation Act, 1949, except Section 34-A and Section 36-AD thereof, shall apply to the Exim Bank.

37. Act 43 of 1961 and Act 7 of 1964 not to apply to Exim Bank.

37. Act 43 of 1961 and Act 7 of 1964 not to apply to Exim Bank.—[vi][***]

38. Liquidation of Exim Bank.

38. Liquidation of Exim Bank.—No provision of any law relating to the winding up of companies or corporations shall apply to the Exim Bank and the Exim Bank shall not be placed in liquidation save by an order of the Central Government and in such manner as it may direct.

39. Power to make regulations.

39. Power to make regulations.—(1) The Board may, with the previous approval of the Central Government, [vii][by notification in the Official Gazette,] make regulations not inconsistent with this Act to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for—

(a) the times and places of the meetings of the Board or of any committee constituted under this Act and the procedure to be followed at such meetings including the quorum necessary for the transaction of business;

(b) the fees and allowances that may be paid to the directors and the members of a committee;

(c) the form and manner in which the balance-sheets and the account of the Export Development Fund and the Exim Bank shall be prepared;

(d) the duties and conduct, and the terms and conditions of service of the officers and other employees of the Exim Bank;

(e) the establishment and maintenance of provident fund or any other fund for the benefit of the officers and other employees of the Exim Bank; and

(f) any other matter which is to be, or may be, prescribed.

(3) Every regulation made by the Board under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the regulation or both Houses agree that the regulation should not be made, the regulation shall thereafter have effect only in such modified form or be of no effect as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that regulation.

40. Amendment of certain enactments.

40. Amendment of certain enactments.—The enactments specified in the Second Schedule shall be amended in the manner directed in the first column thereof and such amendments shall take effect on the dates specified in the second column of that Schedule.

41. Power to remove difficulty.

41. Power to remove difficulty.—If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, do anything, not inconsistent with such provisions, for purpose of removing the difficulty:

Provided that no such order shall be made after the expiration of three years from the date on which this Act receives the assent of the President.

The First Schedule

The First Schedule

[See Section 30(3)]

Declaration of Fidelity and Secrecy

I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . do hereby declare that I will faithfully, truly and to the best of my skill and ability execute and perform the duties required of me as director, member of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . committee, auditor, officer or other employee (as the case may be) of the Export-Import Bank of India and which properly relate to the office or position held by me in or in relation to the said Exim Bank.

I further declare that I will not communicate or allow to be communicated to any person not legally entitled thereto any information relating to the affairs of the Export-Import Bank of India or to the affairs of any person having any dealing with the said Exim Bank, nor will I allow any such person to inspect or have access to any books or documents belonging to or in the possession of the said Exim Bank and relating to the business of the said Exim Bank or the business of any person having any dealing with the said Exim Bank.

(Signature)

Signed before me.

The Second Schedule

The Second Schedule

[* * *][viii]

References

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