To,
Residuary
Non-Banking Companies
Dear Sirs,
Residuary
Non-Banking Companies (Reserve Bank) Directions, 1987 –
Payment of interest
for delayed repayment of deposits
Please refer
to the Residuary Non-Banking Companies (Reserve Bank) Directions, 1987. In terms
of paragraph 5A of the said directions, it is obligatory on the part of the Residuary
Non-Banking Companies (RNBCs) to intimate about the maturity of the deposit to
the depositor at least two months before the date of maturity of the deposit.
2. It has now been decided that, in the interest of the
depositors, where an RNBC fails to repay the deposit along with interest on maturity
on the claim made by the depositor, it shall be liable to pay interest in the
following manner.
i. If the company has intimated about
the maturity to the depositor at least two months before the date of maturity
and has sufficient evidence for the same viz. acknowledgement from the depositor,
but the depositor fails to submit his claim on maturity, then the company will
be required to pay interest at the rate as applicable to the deposit from the
date of claim till the date of repayment along with the amount due on maturity.
ii.
If the company has not intimated about the maturity to the depositor two months
before the date of maturity, then, as and when the depositor makes a claim, the
company will be required to pay interest at the rate as applicable to the deposit
from the date of maturity till the date of repayment along with the amount due
on maturity.
Accordingly, the Residuary Non-Banking Companies
(Reserve Bank) Directions, 1987 have been amended.
3. A
copy each of the amending Notification No. DNBS. 198/ CGM (PK)–2007
dated December 14, 2007 as well as updated Notification
No.DFC.55/ DG(O)-87 dated May 15, 1987 are enclosed for your information.
Yours
faithfully,
(P. Krishnamurthy)
Chief General Manager-in-Charge
RESERVE
BANK OF INDIA
DEPARTMENT OF NON-BANKING SUPERVISION
CENTRAL OFFICE
CENTRE
I, WORLD TRADE CENTRE,
CUFFE PARADE, COLABA,
MUMBAI 400 005.
Notification
No. DNBS.198 / CGM (PK)-2007 dated December 14, 2007
The Reserve Bank
of India, having considered it necessary in the public interest and being satisfied
that for the purpose of enabling the Bank to regulate the financial system of
the country to its advantage it is necessary to amend the Residuary Non-Banking
Companies (Reserve Bank) Directions, 1987, in exercise of the powers conferred
by Sections 45J, 45JA, 45K and 45L of the Reserve Bank of India Act, 1934 (2 of
1934) and of all the powers enabling it in this behalf, hereby directs that the
directions contained in Notification
No.DFC.55/DG(O)-87 dated May 15, 1987 shall stand amended with immediate effect
as follows:
After paragraph 5A, the following paragraph shall be inserted,
namely;
"Payment of interest for delayed repayment of public deposits
5AA.
Where an RNBC fails to repay the deposit along with interest on maturity on the
claim made by the depositor, it shall be liable to pay interest in the following
manner:
i. if the company has intimated about the maturity to the depositor
at least two months before the date of maturity and has sufficient evidence for
the same viz. acknowledgement from the depositor, but the depositor fails to submit
his claim on maturity, then the company will be required to pay interest at the
rate as applicable to the deposit from the date of claim till the date of repayment
along with the amount due on maturity.
ii. if the company has not intimated
about the maturity to the depositor two months before the date of maturity, then,
as and when the depositor makes a claim, the company will be required to pay interest
at the rate as applicable to the deposit from the date of maturity till the date
of repayment along with the amount due on maturity."
(P.
Krishnamurthy)
Chief General Manager-in-Charge