Accounting · Bank Financial Statements
While calculating the 'Statutory Reserve' to be shown in Schedule 2, what is the minimum percentage of the current year's net profit that a banking company in India must transfer as per current RBI guidelines?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 110 percent of the net profit before any dividends are declared.
- 220 percent of the net profit but only if the bank has incurred a loss in the previous year.
- 325 percent of the net profit as per the prevailing RBI guidelines, even though Section 17 of the Act mentions 20 percent.✓
- 450 percent of the net profit to ensure compliance with the latest capital adequacy requirements.
Correct answer
25 percent of the net profit as per the prevailing RBI guidelines, even though Section 17 of the Act mentions 20 percent.
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