English

Explain the following term/concept.Deposit Insurance - Secretarial Practice

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Question

Explain the following term/concept.
Deposit Insurance

Short/Brief Note
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Solution

(1) The company enters into an agreement with the Insurance Company for taking Deposit Insurance. A company needs to take Deposit Insurance at least 30 days before the date of the circular/advertisement or its renewal.
(2) Insurance is to be taken if the amount of deposit plus interest is up to 20,000.
Insurance above 20,000 per depositor Rs 20,000 insurance.

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Terms and Conditions for Acceptance of Deposits
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Chapter 5: Deposits - Exercises [Page 91]

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Give one word or phrase for the following sentence:

Type of company that can accept deposits only from its members or directors.


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