Business Studies

Write notes on (Any Three)
Repayment of Deposits.


SOLUTION
Meaning: - Company accepts the deposits from the general public on certain terms and conditions. The deposit is accepted for a specific period which is specified in the advertisement. The rules pertaining to the repayment of deposits are also given in companies 
(Acceptance of Deposits) Rules, 1975 revised from time to time are as under. 
(A) Maintenance of Liquid Assets: - Every company should deposit or invest a sum not being less that 15% of the amount of its deposit in 
i) A current account or other deposit account with any scheduled bank or ii) In unencumbered (imaginative/ creative) securities of the central or any state government or 
iii) In unencumbered securities mentioned in Section 20 (a), (d) and (e) of the Indian Trust Act. 
iv) In unencumbered (creative) bond issued by the HDFC bank. 
(B) Repayment of Deposits: -
i) Even/ deposit received by a company should be repaid according to the terms and conditions of the deposits. 
ii) Repayment made before 6 months is not allowed. 
iii) Repayment made between 3 months and 6 months will be allowed without interest on the deposits. 
iv) Repayment after six months will be given 2% less interest than the rate of interest applicable. 
v) A company must intimate the depositor's details of maturity, at least 2 months before the deposit. 
vi) Problem companies are prohibited from making premature repayment Problem Company means a company suffering from lacunas (weak) in administrative, financial, legal aspects. 
vii) Repayment can be made after lock-in-period of 6 months by normal companies. 
viii) In case of death of depositors, premature repayment can be made during the lock-in-period. 
View Answers

You're just one step away

Create your Digital Resume For FREE on your name's sub domain "yourname.wcard.io". Register Here!


Subjective Medium Published on 18th 08, 2020
Next Question
Questions 244531
Subjects 8
Chapters 125
Enrolled Students 197
Enroll Now For FREE

Realted Questions

Q1 Single Correct Medium
When a bank decides to make a loan it specially examines its ______.
  • A. aggregate deposits
  • B. securities held
  • C. excess reserves
  • D. required reserves.

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q2 Single Correct Medium
The funds required for a period of more than one year but less than five years is called ____________.
  • A. long-term finance
  • B. medium-term finance
  • C. short-term finance
  • D. none of the above

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q3 Subjective Medium
Answer briefly:
What is the importance of finance to a business concern?

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q4 Subjective Medium
Answer the following question in a word or a sentence.
What is business finance?

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q5 Single Correct Medium
Which of the following feature(s) of preference shares are similar to those of equity shares?
  • A. Redeemability
  • B. Voting rights
  • C. Change over assets
  • D. Both (B) and (C) above
  • E. No obligation to pay dividend

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer