Question

As per Banking Regulation Act,1949 ,a banking company can pay dividend only on satisfying following condition except:

• A. All its capitalised expenses havebeen completely written off
• B. provisioning 25% of net profit to a risk reverse fund
• C. adequate provision for bad debts has been made to the satisfaction of the auditor of the bank.
• D. writing of the depreciation in the value of investments in approved securities which are actually been capitalised or accounted as a loss

Answer 1

Answer:

B. provisioning 25% of net profit to a risk reverse fund

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provisioning 25% of net profit to a risk reverse fund

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