PART III
FUNCTIONS AND POWERS OF PUBLIC DEBT MANAGEMENT AGENCY
Debt, cash and contingent liability management
124. (1) The Agency shall issue Government securities, maintain and manage the register of holders in accordance with the provisions of this Part and the rules made thereunder.
(2) The functions of the Agency shall include--
(a) collecting and publishing information about public debt, including borrowing by the Central Government otherwise than under this Chapter;
(b) purchasing, re-issuing and trading in Government securities; and
(c) carrying out such other transactions as may be required for management of public debt.
(3) The Agency shall manage the contingent liabilities of the Central Government, including--
(a) developing ways to calculate the total contingent liability of the Central Government;
(b) advising the Central Government on its contingent liabilities ; and
(c) carrying out such other transactions as may be necessary to reduce the contingent liabilities of the Central Government or reduce the cost of such contingent liabilities.
(4) The Agency shall undertake cash management for the Central Government, including--
(a) collecting information about the cash assets of the Central Government;
(b) developing systems to calculate and predict cash requirements of the Central Government;
(c) issuing and redeeming such short-term securities as may be required to meet the cash requirements of the Central Government;
(d) advising the Central Government on management of cash of the Central Government; and
(e) carrying out such other transactions as may be necessary to manage the cash of the Central Government.
(5) For the purpose of sub-section (4), the word ‘‘cash’’ means monies held by the Central Government or any of its departments in the form of cash or bank deposits including deposits held with the Reserve Bank.
(6) The Central Government shall provide all information that the Agency may reasonably require to discharge its duties.
(7) If the Central Government provides any confidential information to the Agency, then, the Agency shall ensure that such confidentiality is maintained.
Notes on Clauses:
Clauses 118 to 142 of the Bill seeks to insert a new Chapter VII in the Finance Bill, 2015 which deals with the Public Debt Management Agency.
The said Chapter proposes--
(a) to empower the Central Government to establish an Agency called Public Debt Management Agency with a view to minimising the cost of raising and servicing public debt over the long-term within an acceptable level of risk at all times under the general superintendence of the Central Government;
(b) to provide that the general superintendence, direction and management of the affairs and business of the Agency shall vest in the Board which shall consist of such number of executive and nominee Members as may be notified by the Central Government;
(c) to specify the functions of the Agency which shall include-
(i) collecting and publishing information about public debt, including borrowing by the Central Government otherwise than under this Chapter;
(ii) purchasing, re-issuing and trading in Government securities; and
(iii) carrying out such other transactions as may be required for management of public debt;
(d) to provide that the Central Government shall entrust the Agency with the issue of Government securities;
(e) to provide that the Agency shall be responsible for making the payment to holders of Government securities in accordance with the terms of such Government securities;
(f) to empower the Central Government to issue directions to the Agency from time to time; and
(g) to exempt the Agency from payment of taxes. Clauses 143 to 150 of the Bill seek to insert a new Chapter VIII relating to Senior Citizens’ Welfare Fund.
