Section 25 of Banking Regulation Act - Assets in India

Section 25 of Banking Regulation Act 1949: Assets in India

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).