Dear fellow students could u please explane sec 18 of banking regulation act ( regarding cash reserve) to me... the text of it is given below :::
18. Cash reserve
(1) Every banking company, not being a scheduled bank, shall maintain in India by way of cash reserve with itself or by way of balance in a current account with the Reserve Bank or by way of net balance in current accounts or in one or more of the aforesaid ways, a sum equivalent to at least three per cent of the total of its demand and time liabilities in India as on the last Friday of the second preceding fortnight and shall submit to the Reserve Bank before the twentieth day of every month a return showing the amount so held on alternate Fridays during a month with particulars of its demand and time liabilities in India on such Friday or if any such Friday is a public holiday under the Negotiable Instruments Act, 1881 (26 of 1881), at the close of business on the preceding working day.
Specific question-- please anyone explain the terms - 1. 'as on the last Friday of the second preceding fortnight' & 2.'as on the last Friday of the second preceding fortnight'
I am unable to understand both the time periods used for calculation of the cash reserve?????????????
Please help asap
CAclubindia
