18.(1) Every banking company, not being a scheduled bank, shall maintain
•in India on a daily basis by way of cash reserve with itself or by way of balance in
•a current account with the Reserve Bank, or by way of net balance in current
•accounts or in one or more of the aforesaid ways, a sum equivalent to such per cent.
•of the total of its demand and time liabilities in India as on the last Friday of the
•second preceding fortnight as the Reserve Bank may specify, by notification in the
•Official Gazette, from time to time, having regard to the needs of securing the
•monetary stability in the country and shall submit to the Reserve Bank before the
•twentieth day of every month a return showing the amount so held on alternate
•Fridays during a month with particulars of its demand and time liabilities in India
•on such Fridays or if any such Friday is a public holiday under the Negotiable
•Instruments Act, 1881, at the close of business on the preceding working day.
Explanation.—In this section, and in section 24,—
•* * * * *
(b)“fortnight” shall mean the period from Saturday to the second
•following Friday, both days inclusive;
•* * * * *
•26 of 1881.
•1 of 1956.
•26 of 1881.
•11
•2 of 1934.
•26 of 1881.
•26 of 1881.
24.(2A) A scheduled bank, in addition to the average daily balance which
•it is, or may be, required to maintain under section 42 of the Reserve Bank of
•India Act, 1934 and every other banking company, in addition to the cash reserve
•which it is required to maintain under section 18, shall maintain in India, assets,
•the value of which shall not be less than such percentage not exceeding forty
percent.of the total of its demand and time liabilities in India as on the last Friday
•of the second preceding fortnight as the Reserve Bank may, by notification in the
•Official Gazette, specify from time to time and such assets shall be maintained,
•in such form and manner, as may be specified in such notification.
(3)For the purpose of ensuring compliance with the pr ovisions of this
•section, every banking company shall, not later than twenty days after the end of
•the month to which it relates, furnish to the Reserve Bank in the prescribed form
•and manner a monthly return showing particulars of its assets maintained in
•accordance with this section, and its demand and time liabilities in India at the
•close of business on each alternate Friday during the month, or if any such Friday
•is a public holiday, at the close of business on the preceding working day:
•Provided that every Reginal Rural Bank shall also furnish a copy of the said
•return to the National Bank.
(4)(a) If on any alternate Friday or, if such Friday is a public holiday, on
•the preceding working day, the amount maintained by a banking company at the
•close of business on that day falls below the minimum prescribed by or under
•sub-section (2A), such banking company shall be liable to pay to the Reserve Bank
•in respect of that day's default, penal interest for that day at the rate of three per
cent.per annum above the bank rate on the amount by which the amount actually
•maintained falls short of the prescribed minimum or that day; and
(b)if the default occurs again on the next succeeding alternate Friday, or, if
•such Friday is a public holiday, on the preced ing working day, and continues on
•succeeding alternate Fridays or preceding working days, as the case may be, the
•rate of penal interest shall be increased to a rate of five per cent. per annum above
•the bank rate on each such shortfall in respect of that alternate Friday and each
•succeeding alternate Friday or preceding working day, if such Friday is a public
•holiday, on which the default continues.
•* * * * *
(7)When under the provisions of clause (b) of sub-section (4), penal interest at the
•increased rate of five per cent. above the bank rate has become payable by a banking
•company, if thereafter the amount required to be maintained on the next succeeding
•alternate Friday, or if such Friday is a public holiday, the next preceding working day, is
•still below the prescribed minimum, every director, manager or secretary of the banking
•company, who is knowingly and wilfully a party to the default, shall be punishable with
•fine which may extend to five hundred rupees and with a further fine which may extend
•to five hundred rupees for each subsequent alternate Friday or the preceding working day,
•as the case may be, on which the default continues.
•* * * * *
25.(1) The assets in India of every banking company at the close of business
•on the last Friday of every quarter or, if that Friday is a public holiday under t he
•Negotiable Instruments Act, 1881, at the close of the business on the preceding
•working day, shall not be less than seventy-five per cent. of its demand and time
•liabilities in India.
(2)Every banking company shall, within one month from the end of every quarter,
•submit to the Reserve Bank a return in the prescribed form and manner of the assets and
•liabilities referred to in sub-section (1) as at the close of business on the last Friday of the
•previous quarter, or, if that Friday is a public holiday under the Negotiable Instruments
•Act, 1881, at the close of business on the preceding working day:
•Maintenance of
•a percentage of
assets.
•Assets in India.
•12
•Monthly returns
•and power to
•call for other
•returns and
information.
•Nomination for
•payment of
•depositors'
money.
•Nomination for
•return of
