Section 41: Capital to be Maintained

1) The minimum paid-up capital of the bank or financial institutions shall be as prescribed by the Rastra Bank from time to time.

2) Banks or financial institutions shall have to fulfil the minimum paid-up capital pursuant to sub-section (1) within the time frame as set by the Rastra Bank.

3) The Rastra Bank may make provisions that any person, firm, company or institution may only invest up to fifteen percent of the paid-up capital of any one bank or financial institution.

4) While investing in another bank or financial institution by any person, firm, company or institution having investment in one bank or financial institution pursuant to sub-section (3), investment shall have to be made subject to be less than one percent of the paid-up capital of said bank or financial institution.

5) Provisions concerning investment by any person, firm, company or institution in the paid-up capital of any bank or financial institution to be established in a foreign joint venture, “D” class financial institution and infrastructure development bank shall be as prescribed by the Rastra Bank.

6) The percentage of the share capital that may be invested by any person or institution in order to incorporate a bank or financial institution or invest in a bank or financial institution shall be as prescribed by the Rastra Bank from time to time.