Section 44: General Reserve Fund

1) A bank or financial institution shall have to maintain a general reserve fund. At least twenty percent of the net profits of each fiscal year shall have to be added until the paid-up capital is doubled, and at least ten percent shall have to be deposited in every fiscal year after that in such reserve fund.

2) The amount credited to the reserve fund of a bank or financial institution under sub-section (1) may not be invested or transferred to any other headings without obtaining prior approval of the Rastra Bank.