Report No. 250

61. Deposit Insurance Corporation (Amendment and Miscellaneous Provisions) Act, Act 21 of 1978

Category: Financial Laws

Recommendation: Consider for repeal.

This Act provided for the acquisition and transfer of the undertaking of the Credit Guarantee Corporation of India Limited in order to serve better the need for providing credit guarantee to commercial banks. The Act also amended the Deposit Insurance Corporation Act, 1961 and the Reserve Bank of India Act, 1934. Corresponding amendments have been carried out in both these Acts. However, since this Act also provides for the particulars of the merger of the Deposit Insurance Corporation and the Credit Guarantee Corporation of India Limited, the Central Government should consider repeal of this Act only after consultation with the Reserve Bank of India.