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:
Deposit is a type of ______________________.


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


Return of deposit must be filed every year on or before 31st March.


State whether the following statement is true or false.
Deposit Trust Deed is an agreement between company and Deposit Trustee


Find the odd one.


Select the correct option from the bracket.

Group 'A'

Group 'B'

a) Government Company

1) ___________________

b) ___________________

2) Deposits from members

c) 36 months

3) ___________________

d) ___________________

4) Charge on tangible assets

e) Return of deposit

5)   __________________

(File on or before 30th June, Private Company, Secured deposits, Deposits from public, Maximum tenure of deposits.)


Correct the underlined word and rewrite the following sentence.
Company appoints Credit Rating Agency to protect the interest of Depositors.


Correct the underlined word and rewrite the following sentence.
Charge on assets is created when company issues unsecured deposit.


Explain the following term/concept.
Tenure of Deposit


Explain the following term/concept.

Secured Deposit


Explain the following term/concept.
Charge on tangible assets


Explain the following term/concept.
Deposit Insurance


Answer in brief.
State the contents of circular or Advertisement for Deposit


Justify the following statement
While issuing secured deposits, company has to appoint Deposit Trustee.


Justify the following statement.

Companies have to create a charge on their tangible assets while issuing secured deposits.


Answer the following question:
Explain the provisions related to circular or advertisement for inviting deposits.


Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×