The Section 25 of Banking Regulation Act states that Assets of banking company in India at the close of business on the last Friday of every quarter shall not be less than seventy-five percent of its demand and time liabilities in India.
Assets of Banking Company in India
Every banking company has to submit to the Reserve Bank a return in the prescribed form and manner of the assets and liabilities as at the close of business on the last Friday of the previous quarter within one month from the end of every quarter
Every regional rural bank shall also furnish a copy of the said return to the National Bank
“assets in India” shall be deemed to include export bills drawn in, and import bills drawn on and payable in India and expressed in such currencies as the Reserve Bank may from time to time approve in this behalf and also such securities as the Reserve Bank may approve in this behalf notwithstanding that all or any of the said bills or securities are held outside India
“liabilities in India” shall not include the paid-up capital or the reserves or any credit balance in the profit and loss account of the banking company
“quarter” means the period of three months ending on the last day of March, June, September or December
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