CS Professional · Banking and Insurance - Laws and Practice · Control over Organization of Banks
Sahyadri Commercial Bank Ltd has an authorised capital of Rs 800 crore. Under Section 12(1)(i) of the Banking Regulation Act, 1949, what is the minimum subscribed capital it must have to carry on business in India?
The minimum subscribed capital is Rs 400 crore. Section 12(1)(i) requires subscribed capital to be not less than one-half of authorised capital, and half of Rs 800 crore is Rs 400 crore.
- ARs 200 crore
- BRs 400 croreCorrect
- CRs 600 crore
- DRs 800 crore
Explanation
Section 12(1)(i) requires subscribed capital of at least one-half of authorised capital. One-half of Rs 800 crore is Rs 400 crore. Rs 200 crore is wrongly one-quarter, which would be the paid-up minimum if applied to authorised capital.
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