It has been asked in June 2011 CS company law exam of executive stage if a company which accepted deposits can pay it voluntarily before maturity to depositors without any application from holders.
Does acceptance of deposit rules 1975 conatin any provision as to this issue. I am unsure and hence decided to discuss
Can we discuss...
No.
However, at the request of the deposit holder it can be repaid before the date of maturity but the Company may deduct the amount of interest by reducing the rate by 1%.
Arvindkumar Maniar & Co.
Rajkot
CA
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