State, with reasons, whether the following statements are True or False
Depositor's approval is must for renewal of deposit.
Depositor's approval is must for renewal of deposit. This statement is True. Reasons : (i) On maturity of deposits, a depositor may apply for renewal of the deposition, the renewal of deposits, the old deposit receipt is cancelled and in that place new deposit receipt is issued without repaying deposit amount. (ii) Usually, depositors expect safety and regular income in the form of interest on their investments. If they are satisfied with the above conditions, they get their deposits renewed for a further period. (iii) A company on its own cannot renew the deposits without approaching deposit holders. However, a company is authorised to renew its deposits only if the proposal to renew, is approved and sanctioned by BOD in Board meetings. (iv) Thus, if the depositors are willing and interested, the company can allow the renewal of deposits. Hence, depositors approval is must for renewal of deposits.