Under Section 18 of the Banking Regulation Act, 1949, every banking company is required to maintain in India, by way of cash reserve, a sum of not less than ___ of the total of its demand and time liabilities in India:

Section 18(1) of the Banking Regulation Act, 1949 requires every banking company to maintain in India, by way of cash reserve, a sum equivalent to at least three per cent of the total of its demand and time liabilities in India, as on the last Friday of every second fortnight. This statutory floor is the cash-reserve requirement, which is distinct from the statutory liquidity ratio under Section 24 of the Act: the SLR is maintained in cash, gold and unencumbered approved securities at a percentage specified by the Reserve Bank from time to time, within the statutory ceiling of forty per cent. Options stating two, five, eight or ten per cent misstate the minimum fixed by Section 18(1).