Section 45: Exchange Equalisation Fund

(1) A bank or financial institution carrying on foreign exchange business shall make necessary account adjustments in the profit and loss account of the revaluation profits earned as a result of fluctuations in the exchange rates of foreign currencies, other than the Indian currency, every year at the end of the same fiscal year. While making such account adjustments in the
profit and loss account, if revaluation earnings have been made in any fiscal year, at least twenty-five per cent of such profits shall be credited to the exchange equalisation fund.

Provided that in the case of revaluation profit-loss resulting from fluctuation in the exchange rate of the Indian currency, it shall be as prescribed by the Rastra Bank.

(2) No amount credited to the exchange equalisation fund pursuant to sub-section (1) shall, without the approval of the Rastra Bank, be spent or transferred for any purpose other than the adjustment of loss resulting from the devaluation of foreign currencies.