Section 11. Requirement as to minimum paid-up capital and reserves

11. Requirement as to minimum paid-up capital and reserves .—(1) Notwithstanding anything contained in[3] [section 149 of the Companies Act, 1956 (1 of 1956)], no banking company in existence on the commencement of this Act, shall, after the expiry of three years from such commencement or of such further period not exceeding one year as the Reserve Bank, having regard to the interests of the depositors of the company, may think fit in any particular case to allow, carry on business[4] [in India], and no other banking company shall after the commencement of this Act, commence or carry on business 4[in India], 5[unless it complies with such of the requirements of this section as are applicable to it]. 6[(2) In the case of a banking company incorporated outside India— (a) the aggregate value of its paid-up capital and reserves shall not be less than fifteen lakhs of rupees and if it has a place or places of business in the city of Bombay or Calcutta or both, twenty lakhs of rupees; and (b)[7] [the banking company shall deposit and keep deposited with the Reserve Bank either in cash or in the form of unencumbered approved securities, or partly in cash and partly in the form of such securities— (i) an amount which shall not be less than the minimum required by clause (a); and (ii) as soon as may be after the expiration of each[8] * year, an amount calculated at twenty per cent. of its profit for that year in respect of all business transacted through its branches in India, as disclosed in the profit and loss account prepared with reference to that year under section 29:] Provided that any such banking company may at any time replace— (i) any securities so deposited by cash or by any other unencumbered approved securities, or partly by cash and partly by other such securities, so however, that the total amount deposited is not affected; (ii) any cash so deposited by unencumbered approved securities of an equal value.] 9[(2A) Notwithstanding anything contained in sub-section (2), the Central Government may, on the recommendation of the Reserve Bank, and having regard to the adequacy of the amounts already deposited and kept deposited by a banking company under sub-section (2), in relation to its deposit liabilities in India, declare by order in writing that the provisions of sub-clause (ii) of clause (b) of sub-section (2) shall not apply to such banking company for such period as may be specified in the order.] 1. Subs. by Act 20 of 1994, s. 5, for "director or chairman" (w.e.f. 31-1-1994). 2. Ins. by Act 1 of 1984, s. 20 (w.e.f. 15-2-1984). 4. Subs. by Act 20 of 1950, s. 3, for "in any State" (w.e.f. 18-3-1950). 5. Subs. by Act 33 of 1959, s. 7, for certain words (w.e.f. 1-10- 1959). 6. Subs. by s. 7, ibid ., for sub-section (2) (w.e.f. 1-10-1959). 7. Subs. by Act 36 of 1962, s. 2, for certain words (w.e.f. 16-9-1962).