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Explain the following term/concept.Tenure of Deposit

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Question

Explain the following term/concept.
Tenure of Deposit

Short/Brief Note
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Solution

(1) Deposits can be accepted for a minimum period of 6 months and a maximum period of 36 months.
(2) However, for short term requirements, deposits up to 10% of the aggregate paid-up capital, free reserves, and securities premium account can be accepted for a period of less than six months but not less than three months Rule 3(2) of Companies (Acceptance of Deposits) Rules, 2014.

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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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