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Banks play a vital role in the financial system by accepting deposits from the public and providing loans and other financial services. To safeguard depositors’ interests and maintain financial stability, banks are required to maintain a minimum paid up capital and certain reserves as prescribed by law and regulatory authorities. These requirements ensure that banks have a sound financial base and are capable of absorbing unexpected losses. Minimum paid up capital refers to the minimum amount of capital that must be contributed by the shareholders of a bank and actually paid into the bank. It represents _________ ______ ________ ____ _____ ____ ___ _________ ______ __________.
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