AI Summary of 42. Surplus or deficiency in income of Bank during financial year
The document outlines the financial obligations of the Bank regarding levies and fees as prescribed under the relevant sections of the Act. If the total sum received from these levies exceeds the Bank’s expenditure for a financial year, the surplus must be applied to the performance of the Bank’s functions in the subsequent financial year, while also necessitating a reduction in the prescribed levies and fees for that year.
Conversely, if the sums received are insufficient to cover the Bank’s expenditure for that same year, the Bank is permitted to set levies and fees for the following financial year that are adequate to rectify the deficiency and ensure that such sums cover its functions for both financial years. This ensures a continuous alignment between the Bank’s revenue from levies and its operational expenditure.
42. Surplus or deficiency in income of Bank during financial year
(1) If the total sum received by the Bank on account of -
(a) any levies and fees prescribed under sections 40 and 41, respectively, and
(b) any levies prescribed by the Central Bank Commission under section 32D of the Act of 1942 in respect of the performance of its functions under this Act,
during a financial year is greater than the Bank’s expenditure on the performance of its functions under this Act during that financial year, the Bank -
(i) shall apply the surplus to the performance of those functions in the following financial year, and
(ii) shall reduce the levies and fees so prescribed in relation to the latter financial year accordingly.
(2) If the sum received by the Bank on account of -
(a) levies and fees prescribed under sections 40 and 41, respectively, and
(b) any levies prescribed by the Central Bank Commission under section 32D of the Act of 1942 in respect of the performance of its functions under this Act,