BANKING AFFAIRS

Detailed explanation-1: -2.1. 1.1 The exposure ceiling limits would be 15 percent of capital funds in case of a single borrower and 40 percent of capital funds in the case of a borrower group.

Detailed explanation-2: -The minimum paid-up voting equity capital for small finance banks shall be Rs. 200 crore, except for such small finance banks which are converted from UCBs for which the capital requirement will be as prescribed in paragraph 3(a) above.

Detailed explanation-3: -(2) Save as provided in sub-section (1), no banking company shall hold shares in any company, whether as pledgee, mortgagee or absolute owner, of an amount exceeding thirty per cent. of the paid-up share capital of that company or thirty per cent.

Detailed explanation-4: -Paid-up capital, Subscribed capital and Authorised capital The paid-up capital should not be less than one-half of the subscribed capital. If the capital is increased, the company must comply with the prescribed conditions within two years or as directed by RBI.