Special reserve deduction for scheduled banks' overseas operations allowed, subject to Central Government approval and qualifying conditions.

The amendment expands deduction eligibility to include non-scheduled banks by inserting a definition of non-scheduled bank and updating the Explanation; it also creates a conditional deduction for a special reserve created by scheduled banks (excluding banks incorporated under foreign laws) for overseas operations, limited to a proportion of total income computed before Chapter VI-A deductions and subject to Central Government approval based on capital structure, extent of overseas operations, resource needs and other relevant factors.

---

---

---