Multiple choice

U/s 35-A of the Banking Regulation Act, a banking company, before allowing transfer of shares, is required to obtain RBIs acknowledgment if such transfer results in holding more than _____ of the paid-up capital of the bank.

  1. 2%

  2. 5%

  3. 7.5%

  4. 10%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Prior approval of RBI is required if acquisition together with voting rights exceeds 5% of the paid-up share capital. Acknowledgement by RBI: Banks, when receiving more than 5% of their paid-up capital for transfer to one party must refer to RBI.

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