General Provisions regarding repayment of deposits
Minimum lock- in period and Repayment in the event of death of the depositor
9B. (i) No miscellaneous non-banking company shall grant any loan against deposits or make premature repayment of deposit within a period of three months (lock-in period) from the date of its acceptance:
Provided that in the event of death of a depositor, a miscellaneous non-banking company may repay the deposit prematurely, even within the lock – in period, to the surviving depositor/s in the case of joint holding with survivor clause, or to the nominee or the legal heir/s of the deceased depositor, on the request of the surviving depositor/s/nominee/legal heir, and only against submission of proof of death, to the satisfaction of the company.
Repayment of public deposits by a miscellaneous non-banking company not being a problem miscellaneous non-banking company
(ii) Subject to the provisions contained in sub-paragraph (i), a miscellaneous non-banking company not being a problem miscellaneous non-banking company may,
(a) with effect from October 5, 2004, permit premature repayment of a
deposit at its sole discretion:
Provided that in the case of a deposit accepted prior to the aforesaid date, such miscellaneous non-banking company may, if so permitted by the terms and conditions of acceptance of such deposit, repay it prematurely at the request of the depositor, after the expiry of three months from the date of deposit;
(b) grant a loan up to seventy-five percent of the amount of deposit to a depositor after the expiry of three months from the date of deposit at a rate of interest two percentage points above the interest rate payable on the deposit.
Repayment of public deposits by a problem miscellaneous non-banking company
(iii) Subject to the provisions contained in sub-paragraph (i), in order to enable a depositor to meet expenses of an emergent nature, a problem miscellaneous non-banking company may make premature prepayment of, or grant a loan against, a deposit in the following cases only, namely:
(a) repay a tiny deposit in entirety or repay any other deposit up to an amount not exceeding Rs. 10,000/-; or
(b) grant a loan against a tiny deposit or up to an amount not exceeding Rs. 10,000/- against any other deposit at a rate of interest two percentage points above the interest rate payable on the deposit.
Clubbing of deposits by a problem miscellaneous non-banking company
(iv) 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 or grant of loan by a problem miscellaneous non-banking company;
Provided that this clause shall not apply to premature repayment in the event of death of depositor as provided in sub-paragraph (i).]
Rate of interest on premature repayment of deposits
(v) Where a miscellaneous non-banking company, whether at its sole discretion or at the request of the depositor, as the case may be, repays a deposit after three months from the date of its acceptance, but before its maturity (including premature repayment in the case of death of the depositor), it shall pay interest at the following rates:
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After 3 months but before 6 months
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No interest
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After 6 months but before the date of maturity
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The interest payable shall be 2 per cent lower than the interest rate applicable to a deposit for the period for which the deposit has run or if no rate has been specified for that period, then 3 per cent lower than the minimum rate at which deposits are accepted by the miscellaneous non-banking company.
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Explanation: For the purpose of this paragraph,
(a) `problem miscellaneous non-banking company’ means a miscellaneous non-banking company which -
(i) has refused or failed to meet within five working days any lawful demand for repayment of the matured deposits ; or
(ii) intimates the CLB under section 58AA of the Companies Act, 1956, about its default to a small depositor in repayment of any deposit or part thereof or any interest thereupon; or
(iii) approaches the Bank for withdrawal of the liquid asset securities to meet its deposit obligations; or
(iv) approaches the Bank for any relief or relaxation or exemption from the provisions of Miscellaneous Non-Banking Company (Reserve Bank) Directions, 1977 for avoiding default in meeting deposit or other obligations; or
(v) has been identified by the Bank to be a problem miscellaneous non-banking company either suo moto or based on the complaints from the depositors about non-repayment of deposits or on complaints from the company’s lenders about non-payment of dues.
(b) ‘tiny deposit’ means the aggregate amount of deposits not exceeding Rs. 10,000/- standing in the name of the sole or the first named depositor in the same capacity in all the branches of the miscellaneous non-banking company. |