|
What requirements does a company need to comply with before accepting the deposits?
Following are the requirements need to comply with before accepting the deposits:
1) No deposit shall be accepted which is payable on demand.
2) A deposit can be accepted for a minimum period of 6 months and maximum period of 36 months.
3) The maximum amount of deposits which a company may accept will be 25% of the aggregate of paid up share capital and free reserves out of which not more than 10% should be from a shareholder of non-private limited companies or should be guaranteed by any director.
4) The maximum interest which a company can pay on its deposits depends upon the maximum rate of interest prescribed by the Reserve Bank of India.
5) The maximum amount of brokerage which a company may pay on deposits accepted will be the following percentage of deposits:
- 1 % for deposits upto one year
- 1.5% for deposits upto two years.
- 2% for deposits upto three years.
|
