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CS Executive · Setting Up of Business, Industrial and Labour Laws · The Code on Social Security, 2020

All moneys payable to the Employees' State Insurance Fund are collected by ESIC. Which of the following correctly describes how they are dealt with under the Code on Social Security, 2020?

Moneys payable to the Fund are deposited in banks approved by the Central Government to the credit of the ESI Fund account, and the Fund or other money held is deposited or invested in the manner prescribed by the Central Government.

  1. AThey are deposited in any bank the Corporation chooses and the Fund is invested at its discretion
  2. BThey are deposited in banks approved by the Central Government to the credit of the ESI Fund account, and the Fund is deposited or invested in the manner prescribed by the Central GovernmentCorrect
  3. CThey are paid into the Consolidated Fund of India and released by the Central Government as needed
  4. DThey are deposited in banks approved by the State Government, and invested as the State Board decides

Explanation

Section 25(3) requires deposit in banks approved by the Central Government to the credit of the ESI Fund account, and section 25(4) says the Fund is deposited or invested in the manner prescribed by the Central Government. The Corporation does not choose banks freely, and State Governments or State Boards have no such role.

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