INDEX Check points Process before acceptance Process at the time of acceptance Process after acceptance

Check Points  Check whether MOA authorises to borrow money  Check the Limits of Borrowing (Section 179)  Check whether any Board Resolution is passed for fixing the limit of Borrowing  Check whether proposed Deposit is from shareholder (Equity or Preference)

Check Points  The Proposed Deposit is not exceeding 100% of Paid up capital and Free Reserves

Process  Notice of BM (SS-1)  Agenda of BM –Convening EOGM (SS-1)  Holding Board Meeting to decide date, place and time for EOGM  Hold EOGM and pass “ordinary or Special Resolution (Section 73(2)

Exemption  Requirement of 73(2) (a) to (e) exempt  (Issuance of circular to ROC and members,  statement showing financial position of the Company,  Credit Rating,  Filing of Circular with ROC,  Depositing minimum 15% of amount maturing during the FY and next FY in a scheduled bank in separate bank account as Deposit Repayment Reserve

Cont..  Deposit Insurance  Certificate –no default in repayment of deposits & interest accepted either before or after Act

At the time of acceptance  Term of Deposit  No deposit less than 6 months or more than 36 months from the date of acceptance or renewal  Company can accept deposit less than 6 months which shall not be less than 3 months – not exceeding of 10% of aggregate paid up capital and free reserves.  Deposit in Joint Names – Not exceeding three (With or without Jointly, either or Survivor, First named or survivor, anyone or survivor)

Cont..  Rate of Interest  Not exceeding the maximum rate prescribed by RBI for acceptance of Deposit by NBFC  Penal rate of interest- 18% pa for overdue (matured and claimed)  Rate of brokerage  Not exceeding the maximum rate prescribed by RBI for acceptance of Deposit by NBFC

Cont..  File DPT -1 with ROC 30 days before issue of circular to all members  Issue circular to all members by Registered post with ack due or speed post or by electronic mode in DPT-1 (Remember- hand delivery is not allowed)  Circular may be published in English and Vernacular newspaper  DPT- 1 shall be signed by majority of directors

Cont...  Validity of Circular  Until expiry of 6 months from the close of FY in which it is issued; or  Until the date on which the financial statement is laid before the Company in AGM ; or  Where AGM is not held, the last date on which it should have been held  Whichever is earlier

Other Point  Nomination  Every Depositor can nominate – as per section 72 of the Act  Issue of Deposit Receipts  Within 21 days from receipt of money or realisation of cheque or date of renewal  Deposit receipt shall be signed by officer who is authorised by Board  Date of deposit  Name and address of depositor  Amount received, interest, and date of repayment

After Acceptance  Maintain Register of Deposit  Entries shall be made within 7 days of issuance of receipts  Entries should be authenticated by Director/CS/any other officer authorised by Board  Preservation Period- 8 years from teh FY of latest entry

Pre-mature repayment of Deposit  After expiry of 6 months but before maturity period  Rate of interest payable on such deposit shall be reduced by 1 % from the rate of interest payable till original maturity period

Return of Deposit  File DPT-3 on or before 30 th June of every year  Information contained therein as of 31 March should be audited by auditor

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