Appropriation from Reserve Fund - RBI - Reserve Bank of India
Appropriation from Reserve Fund
RBI/2006-07/132 September 20, 2006 The Chairmen/Chief Executives of Dear Sir, Section 17 (2) of Banking Regulation Act, 1949 – Appropriation
from Reserve Fund 2. In terms of Sec 17(2), where a banking company appropriates any sum or sums from the reserve fund or the share premium account, it shall, within twenty-one days from the date of such appropriation, report the fact to the Reserve Bank explaining the circumstances relating to such appropriation. In order to ensure that their recourse to drawing down the Statutory Reserve is done prudently and is not in violation of any of the regulatory prescriptions, banks are advised in their own interest to take prior approval from the Reserve Bank before any appropriation is made from the statutory reserve or any other reserves. 3. Banks are further advised that:
Yours faithfully, (Prashant Saran) |