law: The Small Industries Development Bank of India Act, 1989 
  19. Loans in foreign
  
  currency 
  1.     
  
    Notwithstanding
  
  anything contained in the Foreign Exchange Regulation Act, 1973 (46 of 1973),
  
  or in any other enactment for the time being in force relating to foreign
  
  exchange, the Small Industries Bank may, for the purposes of granting loans and
  
  advances under this Act, borrow, with the previous consent of the Central
  
  Government and the Development Bank, foreign currency from any bank or
  
  financial institution in any foreign country or otherwise.
  2.     
  
    The
  
  Central Government may, where necessary, guarantee any loan taken by the Small
  
  Industries Bank under sub-section (1) or any part thereof as to the repayment
  
  of principal and the payment of interest and other or otherwise.
  3.     
  
    All
  
  loans and advances granted by the Small Industries Bank out of foreign currency
  
  borrowed under sub-section (1) shall be expressed in terms of foreign currency
  
  as equivalent of Indian currency calculated in accordance with the rate of
  
  exchange prevailing at the time of grant thereof, and the amount due there under
  
  shall be repayable in equivalent Indian currency, calculated in accordance with
  
  threat of exchange prevailing at the time of repayment of such loan or advance.
  4.     
  
    Unless
  
  otherwise provided by the Central Government, any loss or profit in connection
  
  with any borrowing of foreign currency under sub-section (1) for the purpose of
  
  granting loans ad advances under this Act, or with its repayment to the
  
  concerned foreign lending agency, on account of any fluctuations in the
  
  exchange accruing-
  a.     
  
    During
  
  the period within which the loan or advance is repayable by the industrial
  
  concern in the small-scale sector or the period of actual repayment thereof by
  
  the concern, whichever is longer, shall be reimbursed by, or paid to, as the
  
  case may be, the recipient of such loans and advances;
  b.    
  
    After
  
  the expiry of the period specified in clause (a),-
                       
  
   i.        
  
    Shall
  
  be by the Small Industries Bank in respect of normal market fluctuations in the
  
  rate of foreign exchange;
                      
  
   ii.        
  
    Shall
  
  be reimbursed by, or paid to, as the case may be, the Central Government in
  
  respect of fluctuations other than the normal market fluctuations in foreign
  
  exchange.
  Explanation. If any question arises as to
  
  whether any fluctuation as aforesaid is a normal market fluctuation or not, the
  
  same shall be decided by the Central Government whose decision thereon shall be
  
  final.