Deemed to have come into force from 1st April, 2002, the USO Fund is to be utilized exclusively for meeting the Universal Service Obligation. Universal Service Levy(USL) is collected from the Service Providers at a defined percentage of Adjusted Gross Revenue (AGR) as a component of Licence Fee. The collections of USL are credited to the Consolidated fund of India and allocation of funds to USOF is through Parliamentary approval. The balances to the credit of the Fund does not lapse at the end of the financial year.