Section 11. Funds of the Administration

11. Funds of the Administration. —[3] [(1) The Central Government may from time to time advance money to the Administration for its business, the aggregate amount of which, — (a) for the purpose of enabling the Administration to advance loans, shall not, save as hereinafter provided, exceed twelve crores and fifty lakhs of rupees; and (b) for the purpose of enabling the Administration to meet any liability which it may incur in guaranteeing losses in respect of loans advanced by scheduled banks, shall not exceed two crores of rupees: Provided that if, after the lapse of such period from the commencement of this Act as the Central Government may think fit to fix in this behalf, any sum of money earmarked for the purpose specified in clause (b) is found not to have been actually advanced for that purpose and is not, in the opinion of the Central Government, likely to be required for the said purpose, the Central Government may utilize the money for making advances from time to time to the Administration for the purposes specified in clause (a), and when any such advance is made, the limit specified in clause (a) shall be deemed to have been correspondingly increased.] (2)[4] [Subject to any regulations that may be made in this behalf, all moneys belonging to the Administration which are not immediately required by the Administration for any purpose] shall be deposited in the Reserve Bank of India or any agents thereof or invested in such securities as may be approved by the Central Government. (3) The Administration shall pay interest on the money so advanced at the rate of 3 per cent. per annum to the Central Government. 5 [12. Business of the Administration. —The Administration may— (a) subject to the provisions of section 13, advance loans; (b) guarantee, on such terms and conditions as may be agreed upon, losses which a scheduled bank may suffer in respect of any loan advanced by it and approved by the Administration: Provided that the total amount which may be guaranteed in respect of any scheduled bank and the terms and conditions on which such guarantee may be given shall be subject to the prior approval of the Central Government: Provided further that the maximum liability of the Administration under such guarantee shall not exceed the amount for the time being available under clause (b) of sub-section (1) of section 11; 1. The words "and with the prior sanction of the Central Government" omitted by Act 1 of 1950, s. 6. 2. Added by s. 6, ibid . 3. Subs. by Act 36 of 1953, s. 2, for sub-section (1). 4. Subs. by Act 1 of 1950, s. 7, for "All moneys belonging to the Administration". 5. Subs. by Act 36 of 1953, s. 3, for section 12. (c) do all such acts and things as may be incidental to or consequential upon the performance of its functions under this Act including the running of the Administration.]