RBI may extend this period by five years (9) * Prohibitions on employments like Chairman, Directors etc (10) * Paid up capital, reserves and rules relating to these (11 & 12) * Banks not to pay any commission, brokerage, discount etc. more than 2. 5% of paid up value of one share (13) * Prohibits a banking company from creating a charge upon any unpaid capital of the company. (14) Section 14(A) prohibits a banking company from creating a floating charge on the undertaking or any property of the company without the RBI permission. *
Prohibits payment of dividend by any bank until all of its capitalised expenses have been completely written off (15) * To create reserve fund and 20% of the profits should be transferred to this fund before any dividend is declared (17 (1)) * Cash reserve - Non-scheduled banks to maintain 3% of the demand and time liabilities by way of cash reserves with itself or by way of balance in a current account with RBI (18) * Permits banks to form subsidiary company for certain purposes (19) * No banking company shall hold shares in any company, whether as pledgee, mortgagee or absolute owners of any amount exceeding 30% of its own paid up share capital + reserves or 30% of the paid up share capital of that company whichever is less. (19(2). Restrictions on banks to grant loan to person interested in management of the bank (20) * Power to Reserve Bank to issue directive to banks to determine policy for advances (21) * Every bank to maintain a percentage of its demand and time liabilities by way of cash, gold, unencumbered securities 25%-40% as on last Friday of 2nd preceding fortnight (24). * Return of unclaimed deposits (10 years and above) (26) * Every bank has to publish its balance sheet as on March 31st (29). * Balance sheet is to be got audited from qualified auditors (30 (i)) * Publish balance sheet and auditors report within 3 months from the end of period to which they refer.
RBI may extend the period by further three month (31) * Prevents banks from producing any confidential information to any authority under Indl Disputes Act. (34A) * RBI authorised to undertake inspection of banks (35). * Amendment carried in the Act during 1983 empowers Central Govt to frame rules specifying the period for which a bank shall preserve its books (45-y), nomination facilities (45ZA to ZF) and return a paid instrument to a customer by keeping a true copy (45Z). * Certain returns are also required to be sent to RBI by banks such as monthly return of liquid assets and liabilities (24-3), quarterly return of assets and liabilities in India (25), return of unclaimed deposits i. e. 10 years and above (26) and monthly return of assets and liabilities (27-1).
