Economics · Economy
Consider the following statements regarding Section 17 of the Banking Regulation Act, 1949: 1. It mandates that every banking company incorporated in India must create a Reserve Fund and transfer not less than 20% of its annual net profits to it before declaring any dividend. 2. The purpose of this mandatory reserve fund is to directly meet the Statutory Liquidity Ratio (SLR) requirement under Section 24. 3. The Reserve Bank of India (RBI) can exempt a banking company from this requirement if its current reserve funds, together with its paid-up capital, exceed the required limits. Which of the statements given above are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 11, 2, and 3
- 22 and 3 only
- 31 and 3 only✓
- 41 only
Correct answer
1 and 3 only
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