1[(1) The assets in India of every banking company at the close of business on the last Friday of every quarter or, if that Friday is a public holiday under the Negotiable Instruments Act, 1881 (26 of 1881), at the close of the business on the preceding working day, shall not be less than seventy-five per cent. of its demand and time liabilities in India.
(2) Every banking company shall, within one month from the end of every quarter, submit to the Reserve Bank a return in the prescribed form and manner of the assets and liabilities referred to in sub-section (1) as at the close of business on the last Friday of the previous quarter, or, if that Friday is a public holiday under the Negotiable Instruments Act, 1881 (26 of 1881), at the close of business on the preceding working day:]
2[Provided that every regional rural bank shall also furnish a copy of the said return to the National Bank.]
(3) For the purposes of this section,-
3[(a) "assets in India" shall be deemed to include export bills drawn in, and import bills drawn on and payable in India and expressed in such currencies as the Reserve Bank may from time to time approve in this behalf and also such securities as the Reserve Bank may approve in this behalf notwithstanding that all or any of the said bills or securities are held outside India;]
4[(b) "liabilities in India" shall not include the paid-up capital or the reserves or any credit balance in the profit and loss account of the banking company;]
5[(c)] "quarter" means the period of three months ending on the last day of March, June, September or December.
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1. Subs. by Act 33 of 1959 s. 16, for sub-sections (1) and (2) (w.e.f.
1-10-1959).
2. Ins. by Act 61 of 1981, s. 61 and the Second Schedule (w.e.f. 1-5-1982).
3. Subs. by Act 20 of 1950, s. 7, for clause (a) (w.e.f. 18-3-1950).
4. Ins. by Act 33 of 1959, s. 16 (w.e.f. 1-10-1959).
5. Clause (b) relettered as clause (c) by s. 16, ibid. (w.e.f. 1-10-1959).
Section 16 Prohibition of common directors
Section 19 Restriction on nature of subsidiary companies
Section 20 Restrictions on loans and advances
Section 20A Restrictions on power to remit debts
Section 21 Power of Reserve Bank to control advances by banking companies
Section 21A Rates of interest charged by banking companies not to be subject to scrutiny by courts
Section 22 Licensing of banking companies
Section 23 Restrictions on opening of new and transfer of existing, places of business
Section 24 Maintenance of a percentage of assets
Section 26 Return of unclaimed deposits
Section 26A Establishment of Depositor Education and Awareness Fund
Section 27 Monthly returns and power to call for other returns and information
Section 28 Power to publish information
Section 29 Accounts and balance-sheet