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Principles and Practices of Banking - 4 (JAIIB)
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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.
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A
5%
💡 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.