Section 45-IC of RBI Act : Section 45-Ic: Reserve Fund

RBI Act

JavaScript did not load properly

Some content might be missing or broken. Please try disabling content blockers or use a different browser like Chrome, Safari or Firefox.

Explanation using Example

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 has made a profit of 10 million rupees after tax.

According to Section 45-IC of the Reserve Bank of India Act, 1934, QuickFin Services is required to transfer at least 20% of this net profit, which amounts to 2 million rupees, into a reserve fund before they can declare any dividends to their shareholders.

Later in the year, QuickFin Services faces an unex...

Login to access all pages and read more content.

To disable ads and read rest of the premium content, subscribe to KanoonGPT Pro.

🚀 Special Offer! Enjoy 1 Year of Ad-Free Browsing with any subscription.
KanoonGPT is now faster and smarter, powered by upgraded servers.
Subscribe today and unlock all new features!
Update: Discover how KanoonGPT revolutionizes legal research! Watch our demo video on the homepage to see how you can chat with various legal sections using our innovative hybrid AI search. Enjoy free unlimited AI access for a limited time!
Update: Page bookmarking and open in new tab is now supported! Simply use your browser's bookmark manager to save this page for quick access later.
Update: We're building AI tools for the Indian Law community. Help shape the future by filling out this quick form for a chance to get a free 1-year usage of the requested tool.

Download Digital Bare Acts on mobile or tablet with "Kanoon Library" app

Kanoon Library Android App - Play Store LinkKanoon Library iOS App - App Store Link