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      Question

      Under Section 27(1) of the Banking Regulation Act, 1949,

      every banking company is required to submit to the Reserve Bank a monthly return showing its assets and liabilities in India. The return must be submitted:
      A Within fifteen days from the end of the month to which it relates Correct Answer Incorrect Answer
      B Within thirty days from the end of the month to which it relates Correct Answer Incorrect Answer
      C Within seven days from the close of the relevant month Correct Answer Incorrect Answer
      D Before the close of the month succeeding that to which it relates Correct Answer Incorrect Answer
      E By the fifteenth day of the second month following the reference month Correct Answer Incorrect Answer

      Solution

      Section 27(1) requires every banking company to submit, before the close of the month succeeding that to which it relates, a return in the prescribed form showing its assets and liabilities in India as at the close of business on the last Friday of every month (or, if that day is a public holiday, on the preceding working day). The word “succeeding” is crucial: the return for January, for instance, must be filed before the end of February. Under sub-section (2), the Reserve Bank may additionally direct a banking company to furnish statements and information relating to its business at any time, and may call for half-yearly information on investments and classification of advances in respect of industry, commerce and agriculture.

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