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What percentage is the statutory reserve for the banking companies?
Wiki User
∙ 10y ago
20 percent
Wiki User
∙ 10y ago
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Explain the provision to statutory reserve given is the banking regulation act?
15 percent of profit after tax.
What you mean by statutory reserve that the banking companies are required to maintain?
It is the amount of money any bank has to maintain with the Reserve bank for every customer. Say you deposit Rs. 100 in ABC Bank, the bank cannot lend all the 100 bucks. They have to pledge a small amount say Rs. 10 with RBI and can lend only the remaining 90 and make an income out of that 90. This 10 bucks is the statutory reserve. The RBI modifies this reserve periodically.
Classification of non banking financial companies?
there are 4 types of non banking financial companies such as reserve bank of india ,HDFC,central bank and punjab national bank. they give interest about 15.5% for a year.
Importance of banking system?
What is the federal reserve and what does it do?
What organization is the central banking system of the us?
The Federal Reserve System is the organization responsible for banking in the United States. The Federal Reserve is also responsible for overseeing banks in the US.
What is meant by statutory reserve being maintained by banking companies?
The word "statutory" means that something is a legal requirement. In this case the banking companies are legally obliged to keep a certain amount of money in a reserve fund. They must nto invest it or put it 'at risk' in any way.
Explain the provision to statutory reserve given is the banking regulation act?
15 percent of profit after tax.
What you mean by statutory reserve that the banking companies are required to maintain?
It is the amount of money any bank has to maintain with the Reserve bank for every customer. Say you deposit Rs. 100 in ABC Bank, the bank cannot lend all the 100 bucks. They have to pledge a small amount say Rs. 10 with RBI and can lend only the remaining 90 and make an income out of that 90. This 10 bucks is the statutory reserve. The RBI modifies this reserve periodically.
How much percentage of the total time deposits of the banks is locked as statutory liquidity reserve in India?
10%
How do you calculate the statutory reserve of a company?
what are the statutory reserves of a company?
List out the statutory companies in India?
Reserve Bank of India , Life Insurance Corporation of India , and Railways
Classification of non banking financial companies?
there are 4 types of non banking financial companies such as reserve bank of india ,HDFC,central bank and punjab national bank. they give interest about 15.5% for a year.
What requirements banks must meet under a fractional reserve banking system?
banks must keep a specific percentage of deposits on hand.
Who does the federal reserve offer banking services to?
The Federal Reserve offers banking services to the many banks in the United States. The Federal Reserve is where banks store large sums of money.
Is RBI a statutory body or non statutory body?
RBI is a statutory body formed under the Reserve Bank of India Act 1934 and not a constitutional body.
Importance of banking system?
What is the federal reserve and what does it do?
What is fractional reserve banking?
Fractional-reserve banking is what keeps the banks running. They must keep a certain amount of money in reserve (usually in the form of a deposit with the central bank), so that people can withdrawal their deposits.
