Section 7(5) in The State Bank Of India (Subsidiary Banks) Act, 1959
(5)The issued capital of a new bank shall consist of equity shares or equity and preference shares:Provided that the issue of preference shares shall be in accordance with the guidelines framed by the Reserve Bank specifying the class of preference shares, the extent of issue of each class of such preference shares (whether perpetual or irredeemable or redeemable) and the terms and conditions subject to which, each class of preference shares may be issued]
