Multiple choice

Choose the correct statements:

(a) Foreign bank’s paid up capital and other funds should be minimum Rs. 15 lac in the form of deposit with RBI. (b) Foreign bank’s paid up capital and other funds would be Rs. 20 lac if the place of business is Mumbai or Kolkata or both (c) 20% of the foreign bank's profit is to be deposited with an Indian bank. (d) Central government can relax this condition of its own.

  1. All<font size="2"> (a), (b), (c) and (d) </font>

  2. (a), (b) and (c)

  3. (a) and (b)

  4. (a) and (d)

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Under sub-section (2) of section 11 of the BR Act, a foreign bank operating in India has to deposit and keep deposited with the Reserve Bank, an amount of Rs. 15 lac and if it has a place of business in Mumbai or Kolkata or both, Rs. 20 lac. The amount has to be kept in cash, unencumbered approved securities or partially in both. Statements (c) and (d) are not true. 

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