query in banking regulation act

can anybody explain me the text in section 18 of banking regulation act

"every banking co.shall maintain by way of cash reserve or by way of balance in current account with RBI, a sum equivalent to atleast 3% of the total demand & time liabilities as on last friday of the second preceding fortnight"

 

kindly explain the coloured text?

Replies (10)

last friday of the second preceding fortnight for the month of February 2011 is 25-02-2011.

thanx sir

S.18 of BR Act requires each Bank to mantain the Cash reserve including balance with RBI in Current account on daily basis> The percenrageof 3% stated is with refrence to Toatl Time and Demand Laibilities ofas of Friday of the second last fortnight. Thus if  on 14/2/2011 the 3% maintanance will be with refrence to Time and Demand liabilities of 28th January 2011.

Can any one tell me wat wil b the meaning of last friday of the second preceding fortnight for the month of april 2011 as per The Banking Regulation Act,1949.

For August 2011 it is 12th, For July 2011 it is 8th

Last friday of 2nd preceding fortnight = fortnigh means 14 nights. In may 2014 Last friday of second preceding fortnight is 9 may 2014. U have to 1st count from 31 may (14 days) i.e. succeding fortnigh end on 31st may, preceding fortnight end on 17th may starts on 3rd may (Saturday) . ' . last friday will be 9th may (which is between 3rd to 17th may)

No it will be 16th may fr may 14

Simplest way, From first saturday count 14 days. You will end up on Friday at 14. now in the remaining days whichever is the last Friday, that is to be considered for the purpose of this section.

Simplest way, From first saturday count 14 days. You will end up on Friday at 14. now in the remaining days whichever is the last Friday, that is to be considered for the purpose of this section.

Read more at: https://registerexperts.com

@ narmata out of all ... I understood only your ... Great example

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