Question

Under Section 18, every non-scheduled banking company must maintain cash reserve with whom?

Q: Answer-Under Section 18, every non-scheduled banking company must maintain cash reserve with whom?

Section 18 of the Banking Regulation Act requires every banking company that is not a scheduled bank to maintain a cash reserve. It must maintain by way of cash reserve with itself, or in a current account with the Reserve Bank or State Bank or other notified bank, a sum equal to a prescribed percentage of its demand and time liabilities. Scheduled banks are instead governed by Section 42 of the RBI Act for CRR.