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CMA Intermediate · Business Laws and Ethics · Employees State Insurance Act, 1948

Under the Employees' State Insurance Act, 1948, where must moneys accruing or payable to the ESI Fund be paid, subject to rules and regulations?

Moneys payable to the ESI Fund are paid into the Reserve Bank of India or another bank approved by the Central Government. They are credited to an account styled the Account of the Employees' State Insurance Fund. Neither employers nor State treasuries select the depository.

  1. AInto the Reserve Bank of India or another bank approved by the Central Government, to the credit of the Account of the Employees' State Insurance FundCorrect
  2. BInto the Public Account of India maintained by the Central Government
  3. CInto any scheduled bank chosen by the employer who pays the contribution
  4. DInto the treasury of the State Government concerned

Explanation

Section 26(3) of the Act says moneys accruing or payable to the Fund are paid into the Reserve Bank of India or such other bank as the Central Government approves, to the credit of an account styled the Account of the Employees' State Insurance Fund. The employer has no choice of bank, and the Act does not mention State treasuries.

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