| INVESTOR INFORMATION
Acceptance of Public Deposits
RBI governs the acceptance of deposits, rate of interest etc. The Head Office will inform from time to time regarding quantum of deposits accepted and rate of interest that shall be offered. SILA (Statement In Lieu of Advertisement), which is a part of the Deposit Application form will also contains the terms and conditions of acceptance of deposits.
Following guidelines are to be followed while accepting Public Deposit.
| Amount of Deposit that can be collected |
H.O will inform.
Accept deposits through cheque/DD only.
The depositor should provide a photocopy of the address proof. |
| Period of Public Deposits |
Normally 12 months only (Consult H.O in case of higher period). |
| Rate of Interest |
12% (Subject to RBI guidelines and Management decision from time to time). |
Renewal of Public Deposit
Amount of Deposit that can be collected |
The deposit should be renewed only after obtaining a written request/by filling a fresh application form.
Where an existing depositor renews the deposit before maturity for availing of the benefit of higher rate of interest, Company shall pay the depositor the increase in the rate of interest provided that:
- the deposit is renewed in accordance with the other provisions of RBI directions and for a period longer than the remaining period of the original contract; and
- the interest on the expired period of the deposit is reduced by one percentage point from the rate which the company would have ordinarily paid, had the deposit been accepted for the period for which such deposit had run; any interest paid earlier in excess of such reduced rate is recovered/adjusted.
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Payment of Interest overdue Public Deposit |
The Company may, at its discretion, allow interest on an overdue public deposit or a portion of the said overdue deposit from the date of maturity of the deposit subject to the conditions that :
- the total amount of overdue deposit or the part thereof is renewed in accordance with other relevant provisions of RBI directions, from the date of its maturity till some future date; and
- the interest allowed shall be at the appropriate rate operative on the date of maturity of such overdue deposit which shall be payable only on the amount of deposit so renewed:
Provided that where an NBFC fails to repay the deposit along with interest on maturity on the claim made by the depositor, the NBFC shall be liable to pay interest from the date of claim till the date of repayment at the rate as applicable to the deposit.
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Provisions regarding repayment of Public Deposit |
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NO non-banking financial company shall repay any public deposit within a period of three months from the date of its acceptance.
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Where a non-banking financial company at the request of depositor repays public deposit after the period indicated in clause (1) above but before its maturity, it shall pay interest at the following rate:
| a) |
Three months but before expiry of six months |
No interest |
| b) |
Six months but before expiry of twelve months |
2% less than the agreed rate |
| c) |
Twelve months but before the date of maturity |
One percentage point less than the rate which the company would have ordinarily paid, had the deposit been accepted for the period for which such deposit had run: |
Provided that in the event of death of a deposit, the deposit may be repaid prematurely to the surviving depositor/s in the case of joint holding with survivor clause, or to the nominee or to legal heir/s with interest at the rate which the company would have ordinarily paid, had such deposit been accepted for the period for which such deposit had run, upto the date of repayment.
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A non-banking financial company may grant a loan upto seventy-five per cent of the amount of public deposit to a depositor after the expiry of three months from the date of deposit at a rate of interest two percentage points above the interest rate payable on the deposit. |
Furnishing of receipt to depositor |
- Every non-banking financial company shall furnish to every depositor or his agent or group of joint depositors, a receipt for every amount received by the company by way of deposit.
- The said receipt shall be duly signed by a officer authorized by the company in that behalf and shall state the date of deposit, the name of the depositor, the amount in words and figures received by the company by way of deposit, rate of interest payable thereon and the date on which the deposit is repayable:
Provided that, if such receipts pertain to installments subsequent to the first installment of a recurring deposit it may contain only the name of the depositor and date and amount of deposit.
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| Register of deposit |
Will be provided by HO. It will have following particulars:-
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name and address of the depositor
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date and amount of each deposit,
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duration and the due date of each deposit,
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date and amount of accrued interest or premium on each deposit,
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date of claim made by the depositor,
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date and amount of each repayment, whether of principal, interest or premium,
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the reasons for delay in repayment beyond five working days, and
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any other particulars relating to the deposit
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The register aforesaid shall be kept at each branch in respect of the deposit accounts opened by that branch of the company and a consolidated register for all the branches taken together at the registered office of the company and shall be preserved in good order for a period of not less than eight calendar years following the financial year in which the latest entry is made of the repayment or renewal of any deposit of which particulars are contained in the register.
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