Question

The section of BR act that deals with reserve fund ?

• A. Section 3
• B. Section 11
• C. Section 15
• D. Section 17

Answer 1

Answer:

D. Section 17

BR Act:

• The BR Act and the RBI Act empower the Reserve Bank to supervise and regulate the operations of all types of banks in India.

• Banking Companies Act 1949

• Act 10 of 1949

• Banking Companies Act was passed in : 10-3-1949

• Came into force in : 16-3-1949

• Banking Companies Act was renamed as Banking Regulation Act in : 1966

• Banking Regulation Act was applicable to Co-operative Societies in 1965 and came in to force on 1.3.1966

• Total Number Sections in BR Act - 56

• Total number of Schedules in BR Act - 5

• 5 parts

• 5 Schedules

Section 17 of Banking Regulation Act - Reserve Fund

• Every banking company incorporated in India shall create a reserve fund of a sum equivalent to not less than 20% of such profit according to BR ACT (and as per RBI ACT at present 25% of the net profit to reserve fund).

• Where a banking company appropriates any sum or sums from the reserve fund or the share premium account, it shall, within 21 days from the date of such appropriation,