Multiple choice

Section 12 of Banking Regulation Act stipulates that the subscribed capital of a bank cannot be less than ___ % of its authorized capital and paid-up capital cannot be less than _____ % of the subscribed capital.

  1. 10%, 50%

  2. 25%, 25%

  3. 50%, 50%

  4. 50%, 10%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Under section 12 of Banking Regulation Act, no banking company shall carry on business in India, unless it satisfies the condition that the subscribed capital of the company is not less than one-half of the authorised capital and the paid-up capital is not less than one-half of the subscribed capital. Thus, option 3 is the correct answer.

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