As per Section 25 of the Banking Regulation Act, 1949, the assets in India of every banking company at the close of business on the last Friday of every quarter or, if that Friday is a public holiday, at the close of the business on the preceding working day, shall not be less than ______ of its demand and time liabilities in India.
1. 75%
2. 10%
3. 25%
4. 50%

The correct answer is 75%.

• The assets in India of every banking company at the close of business on the last Friday of every quarter or, if that Friday is a public holiday under the Negotiable Instruments Act, 1881 (26 of 1881), at the close of the business on the preceding working day, shall not be less than seventy-five percent. 

• Every banking company shall, within one month from the end of every quarter, submit to the Reserve Bank a return in the pre­scribed form and manner of the assets and liabilities referred to in sub-section
  • as at the close of business on the last Friday of the previous quarter, or, if that Friday is a public holiday under the Negotiable Instruments Act, 1881 (26 of 1881) at the close of business on the preceding working day.
• Banking Regulation Act, 1949:-
  • Banking ​means accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, order, or other wise.
  • It was enacted on 10 March 1949 and provides a regulatory framework for commercial banks. 
  • This act empowers RBI to regulate commercial banks.