International Monetary Fund and Bank Act,1945
Act No : 0
Section : SHORT TITLE, EXTENT AND COMMENCEMENT
INTERNATIONAL MONETARY FUND AND BANK ACT, 1945
47 of 1945
24th December, 1945
Amending Act, 25 of 1959.- "The International Monetary Fund and the International Bank for Reconstruction and Development were brought into existence through an International Agreement concluded at the U.N. Monetary and Financial Conference held in December, 1945. and India became one of the original members of these institutions by signing the respective Articles of Agreements. An Ordinance called the "International Monetary Fund and Bank Ordinance, 1945", was promulgated in December. 1945, to implement the Agreements under which these two institutions were established. This Ordinance is still in force. Section 2(l)(a)of the Ordinance requires the Central Government to pay out of Central revenues such sums as may from time to time be required for the purpose of paying India's original quota in the International Monetary Fund and its initial subscription to the capital stock of the International Bank. The section also requires the Centra Government to make subscription towards an increase in the quota in the International Monetary Fund. The Ordinance, however, contains no provision empowering the Central Government to subscribe towards additional shares in respect of an increase in the authorised capital stock of the Bank. The Board of Governors of the International Bank has recently decided on an increase in the authorised capita stock of the International Bank and a general 100 per cent. increase in the subscriptions of all member countries. Since the Ordinance does not authorise payment in respect of any increase in our subscription on account of an increase in the authorised capital stock of the Bank, it has become necessary to amend the Ordinance and provide for such authority. Clause 4(ii) of the Bill seeks to achieve this purpose. Opportunity has also been taken to convert the Ordinance into an Act". -Gazette of India, 1959, Extra., Pt. II, S. 2, p. 587
Amending Act, 67 of 1982.-The Articles of Agreement of the International Monetary Fund (IMF) were adopted at the U.N. Monetary and Financial Conference, Bretton Woods on July 22, 1944. It entered into force on December 27, 1945. India is one of the original members of the institution. An ordinance called "The International Monetary Fund and Bank Ordinance, 1945" was promulgated in December, 1945 to implement the agreements under which the institution was established. The ordinance was later converted into the International Monetary Fund and Bank Act, 1945.
2. The Articles of Agreement of IMF were first amended in 1969, when the Special Drawing Rights Scheme was introduced in order to supplement the reserves of member-countries. India participated in the Scheme which came into operation from 28th July, 1969, by accepting the necessary modifications in the original Articles of the Agreement of the Fund.
3. The Board of Governors of IMF in Resolution No. 31-A adopted on April 30, 1970 modifications resuiting in second set of amendments to the Fund Articles of Agreement. The main objectives of these amendments, which came into force on 1st April. 1978, are, greater flexibility in exchange rate arrangements; reduction in the role of gold and enlargement of role of Special Drawing Rights; simplification and modernisation of the Fund, financial operations and transactions: improvement in the organisational and administrative aspects of the Fund, etc. The amended Fund Agreement now contains 31 Articles and I I Schedules A to K as against 32 Articles and 9 Schedules- A to I in the old Agreement. Nomenclatures of certain Articles have also undergone change to provide for amendments introduced in the Fund Agreement and number of clause in certain Articles have also either been increased or decreased.
4. The existing provisions in the International Monetary Fund Act, 1945, which is an enabling Act of the Government to implement the provisions of the Fund's Agreement, will need amendment to provide for the aforesaid amendments in the Fund's Agreement. Hence it is proposed to amend the Act to incorporate in it reference to the new or revised Articles and Schedules as also the changes in nomenclatures brought about in the amended Fund Agreement.
5. The present opportunity is being availed of to omit the reference insection 4 of the Act to the Indian Income-tax Act, 1922and to amendsection 7of the Act to bring the rule laying provision into conformity with the latest formula.
6. The Bill seeks to achieve the above objects.-Gaz. of India, 20-7-1982, Pt. II, S. 2, Ext., p. 10.
An1[Act] to implement the International Monetary Fund and Bank Agreements. Whereas, at the United Nations Monetary and Financial Conference held at Bretton Woods, New Hampshire, in July 1944, Articles of the following agreements were drawn up, and set out in the Final Act of the said Conference, that is to say,-
(a) an Agreement (hereinafter referred to as the Fund Agreement) for the establishment and operation of an international body to be called the International Monetary Fund (hereinafter referred to as the International Fund); and
(b) an Agreement (hereinafter referred to as the Bank Agreement) for the establishment and operation of an international body to be called the International Bank for Reconstruction and Development (hereinafter referred to as the International Bank); And whereas an emergency has arisen which renders it necessary to make certain provisions for the purpose of implementing the aforesaid Agrements:2[Be it enacted as follows:-]
SECTION 01: SHORT TITLE, EXTENT AND COMMENCEMENT
- (1) Thisa [Act] may be called THE INTERNATIONAL MONETARY FUND AND BANKa[ACT], 1945
(2) It extends to the whole of India4[* * *].
(3) It shall come into force at once.
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