Renewal of deposits before maturity

1[2[9AB]. Where any miscellaneous non-banking company permits an existing depositor “being a shareholder,” to renew his deposit before maturity for availing the benefit of higher rate of interest, such company shall pay the depositor the increase in the rate of interest provided,

(i) the deposit is renewed in accordance with the other provisions of these directions and for a period longer than the remaining period of the original contract; and

(ii) the interest on the expired period of the deposit is reduced by one percentage point from 3[the rate which the company would have ordinarily paid , had the deposit been accepted for the period for which such deposit has run] and/or paid earlier and recovered/adjusted.]


Note :

1. Inserted, vide Notification No. DFC (COC) 62/ DG(J) dated September 19, 1991

2. Renumbered, vide Notification No. 181 dated October 5, 2004

3. Substituted, vide Notification No.94.ED(JRP)/96 dated January 1, 1997