Question

Under Section 45-IB of the RBI Act, 1934, a non-banking financial company must invest in unencumbered approved securities an amount which shall not be less than what percentage of its outstanding deposits (subject to the Bank's power to specify a higher figure)?

Q: Answer-Under Section 45-IB of the RBI Act, 1934, a non-banking financial company must invest in unencumbere...

Section 45-IB1 requires every non-banking financial company to invest and continue to invest in India in unencumbered approved securities an amount which, at the close of business on any day, shall not be less than five per cent, or such higher percentage not exceeding twenty-five per cent as the Bank may specify, of the deposits outstanding at the close of business on the last working day of the second preceding quarter. The baseline statutory minimum is therefore five per cent.