Question

What is the minimum percentage of paid-up capital and reserves prescribed under Section 11 for a banking company incorporated outside India?

Q: Answer-What is the minimum percentage of paid-up capital and reserves prescribed under Section 11 for a ban...

Section 11 of the Banking Regulation Act prescribes minimum paid-up capital and reserves requirements. For a banking company incorporated outside India, the aggregate value of paid-up capital and reserves must not be less than Rs. 15 lakh, and Rs. 20 lakh if it has a place of business in Mumbai or Kolkata. These thresholds ensure that foreign banks operating in India maintain adequate capital. The requirement protects depositors and ensures financial soundness.