9A Ceiling on the rate of interest and brokerage

9A (1) On and from April 24, 2007, no miscellaneous non- banking company shall :-

(a) invite or accept or renew deposit on a rate of interest exceeding twelve and a half per cent per annum. Interest may be paid or compounded at rests which shall not be shorter than monthly rests:

Provided that nothing contained in this clause shall apply to monies raised by the issue of debentures or bonds;

(b) pay to any broker for deposits collected by or through him, brokerage in excess of the rates specified below :-

(i) where a deposit is for : one percent of such a period not exceeding deposit one year

(ii) where a deposit is for : one and a quarter a period exceeding one per cent (not per year but not exceeding annum) of such two years deposit

(iii) where a deposit is for : one and a half per-a period exceeding two cent (not per annum) years. of such deposit.

(2) On and from September 18, 2003, no non-banking financial company shall invite or accept or renew repatriable deposits from Non-Resident Indians in terms of Notification No.FEMA.5/2000-RB dated May 3, 2000 under Non-Resident (External) Account Scheme at a rate exceeding the rate specified by the Reserve Bank of India for such deposits with scheduled commercial banks.