Under Section 45-IB of the RBI Act, 1934, a non-banking

Solution

Section 45-IB(1) 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.