Banking · Banking Regulation Act

Choose the correct statements regarding the 'Reserve Fund' and 'Dividends' under the Banking Regulation Act 1949: Statement I: Section 17 requires every banking company incorporated in India to create a reserve fund and transfer at least 25 percent of its net profit to it every year before declaring any dividend. Statement II: A banking company is prohibited from paying any dividend on its shares until all its capitalized expenses (like preliminary expenses and organization expenses) have been completely written off. Statement III: The RBI can exempt a bank from the requirement of transferring 25 percent to the reserve fund if the fund is already equal to the paid-up capital. Statement IV: Banks can pay dividends even if they have not met the CRAR requirements of 9 percent. Which set of statements is correct?