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Question
Explain the following term/concept.
Deposit Repayment Reserve Account
Solution
(1) A sum not less than 20% of the amount of its deposits maturing during a financial year shall be deposited in a separate bank account in a scheduled bank. For this, a company has to open an account called as 'Deposit Repayment Reserve Account'.
(2) The amount should be deposited on or before 30th April each year. The 'Deposit Repayment Reserve Account shall be used by the company only for the purpose of repayment of deposits.
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Answer in one sentence.
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Credit Rating
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Companies have to create a charge on their tangible assets while issuing secured deposits.
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ | ||
| a) | Retained earnings | 1 | ______ |
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(Less working capital, Correspondence, Secured debentures, Internal source of finance, Maximum tenure of deposits.)
Give one word or phrase for the following sentence:
Type of company that can accept deposits only from its members or directors.
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