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Section 42 requires a scheduled bank to keep with the Bank an average:
AHourly balance
BDaily balance
CYearly balance
DWeekly balance
Answer & Solution
Correct answer: B. Daily balance
1. The requirement attaches to banks in the Second Schedule.
2. It is the statutory basis of the cash reserve.
3. They maintain an average daily balance.
_Source: The Reserve Bank of India Act, 1934 (India Code)_
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