Public deposit

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CA Kanchan (Querist)
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20 November 2012 Is Incentive paid to broker for arranging public deposit covered in the percentages given in the Public deposit rules, 1975 under clause 3(1)(d)

CA SAYANTAN BASU

CA SAYANTAN BASU (Expert)
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21 November 2012 Dear sir ,
1. No non banking company is being allowed to pay brokerage ,commission or interest or incentive more than 2% of the deposit collected .....

2. expenses spent by the broker not more than 0.5% of the deposit collected by him .....
As per clause 3(1)(d) of Public Deposit rules it has been specified the following provisions :

no company shall pay brokerage to any broker at a rate, exceeding one per cent of the deposits for a period up to one year, one and half per cent of the
deposits for a period of more than one year but up to two years, and two per cent of the deposits for a period exceeding two years collected by or through
such broker, and such payment shall be on one time basis.

The incentive factor has not been considered here . So i think as per Public Deposit Rules 1975 it has been stated that the incentive will not be given to the broker .....

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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21 November 2012 no company shall pay brokerage to any broker at a rate, exceeding one per cent of the deposits for a period up to one year, one and half per cent of the deposits for a period of more than one year but up to two years, and two percent of the deposits for a period exceeding two years collected by or through such broker, and such payment shall be on one time basis.

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