Fixed Deposit

Query related to Acceptance of Deposit Rules, 1975

Under Rule,3A

Every Company shall before the 30^th Day of April of each year, deposit or invest as the case may be a sum which shall not be less than 15% of the amount of its deposits maturing during the year ending on 31^st day of march next following...

Query:- what about the deposit if the repayment date is mid April. Because the date of investment is 30 April and if the deposit is matured before that day, is such deposit is to be included for such 15% investment.??

My Opinion:- Every company is required to create an investment, as prescribed, not less than 15 % of the amount of deposit maturing during the year i.e. from 1^st April to 31 March, next following year. Because the rule says “15% of the amount of deposits maturing during the year.”

Contrary View:- If the date of investment as above is on 29^th April and if some Deposits are maturing between 10 to 15 April, they are not included for such 15% investment limit. Because on the date of investment such Deposits are already paid. The intention of Law is to create security for the repayment of deposits but if any Deposit is already matured why such security is to be provided.