The Reserve Bank of India Act, 1934
CHAPTER III B: PROVISIONS RELATING TO NON BANKING INSTITUTIONS RECEIVING DEPOSITS AND FINANCIAL INSTITUTIONS
Section 45-Ic: Reserve Fund
Bare Act
45 IC Reserve fund
- Every non-banking financial company shall create a reserve fund and transfer therein a sum not less than twenty per cent. of its net profit every year as disclosed in th… Read the complete text with KanoonGPT Pro.
Simplified Act
Simplified Explanation of Section 45-IC Reserve Fund
- Every company that provides financial services without being a bank (non-banking financial company) must set aside… Read the complete text with KanoonGPT Pro.
Explanation using examples
Imagine a non-banking financial company (NBFC) named "QuickFin Services" that provides loans and financial services. At the end of the financial year, QuickFin Services calculates its net profit and discovers it ha… Read the complete text with KanoonGPT Pro.
