What is the minimum paid-up capital and reserves for a Scheduled Bank in India?

Question

The Reserve Bank of India Act, 1934, Second Schedule, Section 42(6) mandates a minimum paid-up capital and reserves of ₹5 lakh for a bank to be classified as a Scheduled Bank in India. Scheduled Banks are eligible for certain facilities such as access to RBI refinancing and participation in clearing houses. This statutory limit has remained unchanged in the Act since 1934.

GKToday Admin · Accepted Answer

₹5 lakh The Reserve Bank of India Act, 1934, Second Schedule, Section 42(6) mandates a minimum paid-up capital and reserves of ₹5 lakh for a bank to be classified as a Scheduled Bank in India. Scheduled Banks are eligible for certain facilities such as access to RBI refinancing and participation in clearing houses. This statutory limit has remained unchanged in the Act since 1934.

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