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RBI / 2005-06 / 231
DNBS (PD) C.C. No. 60/ 02.01 / 2005-06
December 9, 2005
To,
All Non-Banking Financial Companies (NBFCs),
Miscellaneous Non-Banking Companies (MNBCs) and
Residuary Non-Banking Companies (RNBCs)
Dear Sirs,
Premature repayment of public deposits
or deposits
Please refer to our circular DNBS
PD) C.C. No. 44/02.01/2004-05 dated October 5, 2004 on the captioned subject.
In paragraph 3(5) of the said circular, it has been provided that all deposit
accounts standing to the credit of sole/first named depositor in the same capacity
shall be clubbed and treated as one deposit account for the purpose of premature
repayment.
2. It is emphasized that the
said clause of clubbing of deposits is applicable in case of problem NBFC/RNBC/MNBC
only and to clarify the position same has been amended. The amending Notifications
Nos. 182-184 of date as also the Notifications Nos.
a. DFC.
118 /DG (SPT) – 98 dated January 31, 1998;
b. DFC.
55 / DG (O) – 87 dated May 15, 1987; and
c. DNBC.
39 / DG (H) – 77 dated June 20, 1977
(as amended up-to-date) are enclosed
for your information and meticulous compliance.
3. Thus,
the clause relating to clubbing of all deposit accounts, standing to the credit
of sole/first named depositor in the same capacity, for the purpose of premature
repayment/grant of loan, as the case may be, of an amount upto Rs 10000/- to
the depositor is applicable only in case of problem NBFC/RNBC/MNBC.
4. We reiterate that in case
of death of depositor, even the problem NBFC/RNBC/MNBC may repay the deposit/public
deposit even within lock in period without clubbing of deposit/public deposit.
5. Please acknowledge receipt
to the Regional Office of the Department of Non-Banking Supervision, Reserve
Bank of India under whose jurisdiction the Registered Office of your company
is situated.
Yours faithfully,
Sd/-
(P. Krishnamurthy )
Chief General Manager-in-Charge |