English

Explain the following term/concept. Deposit Repayment Reserve Account.

Advertisements
Advertisements

Question

Explain the following term/concept.

Deposit Repayment Reserve Account.

Explain
Advertisements

Solution

  1. A Deposit Repayment Reserve Account is a special bank account that a company accepting deposits must maintain under Section 73(2)(c) of the Companies Act, 2013.
  2. Every company is required to deposit not less than 20% of the amount of its deposits maturing during the following financial year in a scheduled bank in this separate account.
    The amount must be deposited on or before 30th April each year.
  3. The money in the Deposit Repayment Reserve Account shall be used only for the purpose of repaying deposits when they become due and for no other purpose.
shaalaa.com
Terms and Conditions for Acceptance of Deposits
  Is there an error in this question or solution?
Chapter 5: Deposits - Exercises [Page 91]

APPEARS IN

RELATED QUESTIONS

When should a company file Return of Deposit? 


Select the correct answer from the options given below and rewrite the statement:
For premature repayment of deposit, company deducts __________ % of interest.


Write a word or a term or a phrase which can substitute the following statement.
Minimum tenure of a deposit.


Write a word or a term or a phrase which can substitute the following statement.
Period within which a company has to create a charge on its tangible assets


Write a word or a term or a phrase which can substitute the following statement.
Time within which company has to issue deposit Receipt


Write a word or a term or a phrase which can substitute the following statement.
Book which contains details of deposits accepted or renewed.


State whether the following statement is true or false.

Deposit can be accepted for a maximum of 36 months.


State whether the following statement is true or false.

For secured deposits, company has to create a charge on its tangible assets.


Find the odd one.


Complete the sentence:
Agency which gives ratings of the deposits of a company is called ______________.


Arrange in proper order.
a. Appoint Deposit Trustee.
b. Hold General Meeting.
c. Create charge on assets.


Arrange in proper order.
a. Obtain Credit Rating.
b. Entries in Register of Deposits.
c. Issue Deposit Receipt.


Explain the following term/concept.
Eligible Public Company


Explain the following term/concept.
Deposit Insurance


Explain the following term/concept.
Credit Rating


Answer in brief.
State the provisions regarding appointment of Deposit Trustee.


Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×