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Banking Regulation Act, 1949 · Section guide

Section 24: Maintenance of a percentage of assets

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 24 — Maintenance of a percentage of assets. Requires maintenance of the statutory percentage of eligible liquid assets and contains return/default/penal-interest mechanics; from. 15 December 2025 the timing references operate by last day of each calendar fortnight, with the revised public-holiday and continuing-default rules.

Official statute linkedProvision-specific anatomyPractical case + evidence file2025 amendment mapped
Official text: DFS consolidated Act · Banking Laws (Amendment) Act, 2025
Effective-date control — 15 December 2025. Last-day-of-fortnight and revised continuing-default mechanics substituted. For an event that straddles this date, the working paper should show the pre/post amendment position rather than treating the current wording as historically universal.

Statutory structure and provision map

This map is a provision-specific explanation, not a substitute for the exact statutory text.

Core statutory rule

Requires maintenance of the statutory percentage of eligible liquid assets and contains return/default/penal-interest mechanics.

Condition / limitation

from 15 December 2025 the timing references operate by last day of each calendar fortnight, with the revised public-holiday and continuing-default rules.

Source and effective-date control

Apply the wording of Section 24 that was in force on the event date; use the official Act and any applicable commencement/amending instrument linked on this page.

Professional application

Set out liquid-asset duty, valuation, maintenance basis, returns and shortfall consequences with dated current directions.

Evidence / working-paper checklist

  • Section 24 evidence: general-ledger / treasury reconciliation.
  • Section 24 evidence: return or financial statement submitted to RBI/Registrar.
  • Section 24 evidence: auditor sign-off or working papers where relevant.
  • Section 24 evidence: filing acknowledgement and calculation of the statutory reference date.

Retain the event date and source version with the file so the conclusion remains reproducible after later amendments.

Common mistakes to avoid

  • For Section 24, avoid using a legacy Friday/fortnight reference after the statutory date changed.
  • For Section 24, avoid submitting a return without a ledger reconciliation.
  • For Section 24, avoid assuming an extension exists without a written statutory/RBI basis.

Linked Rules, RBI directions, notifications and forms

Linked instruments keep their own legal basis; they are not attributed to Section 24 unless the official instrument says so.

Related sections inside the Act

Section 18 — Cash reserveSection 25 — Assets in IndiaSection 27 — Monthly returns and power to call for other returns and informationSection 22 — Licensing of banking companiesSection 23 — Restrictions on opening new and transfer of existing places of businessSection 26 — Return of unclaimed deposits

Use these links to read Section 24 in its statutory sequence, especially where the provision imports definitions, approvals, appeals, penalties or winding-up consequences from neighbouring sections.

Current-law source control

Source control: read Section 24 in the DFS/India Code text together with the mapped 2025 amending Act and commencement date.

Dated matters: verify any later Gazette, RBI direction or binding judgment affecting Section 24 on the event date.

Disclaimer

This Finin2min page is an educational and professional reference. Banking regulation is fact-, entity- and date-sensitive. Verify the current Act, Gazette amendments and commencement notifications, applicable RBI Rules/directions and the transaction record before acting or filing.