Section 11 of the Act regulates the minimum paid-up capital and reserves of banking companies. In the case of a banking company incorporated outside India, the aggregate value of its paid-up capital and reserves shall not be less than fifteen lakhs of rupees; however, if it has a place or places of business in the city of Bombay or Calcutta or both, the requirement is:

Under Section 11(2)(a), for a banking company incorporated outside India, the aggregate value of paid-up capital and reserves shall not be less than fifteen lakhs of rupees, and if it has a place or places of business in the city of Bombay or Calcutta or both, twenty lakhs of rupees. The provision also requires such a foreign bank to keep deposited with the Reserve Bank, in cash or unencumbered approved securities, an amount not less than this minimum, plus annual sums calculated at twenty per cent of profit on Indian branch business. These figures are historical statutory minimums and are distinct from the much higher capital norms the RBI prescribes administratively for current licensing.