useful for projects on public deposite

1. PUBLIC DEPOSITS
Public Deposits
The public deposits refer to the deposits that are attained by the numerous large and small firms
from the public. The public deposits are generally solicited by the firms in order to finance the
working capital requirements of the firm. The companies offer interest to the investors over public
deposits.
The rate of interest, however, varies with the time period of the public deposits. The companies
generally offer 8 to 9 percent interest rate on the deposits made for one year.
The companies offer 9 to 10 percent interest rate over public deposits for two years while 10 to 11
percent interest rate is offered for the three year deposits. There are rules regulating the fixed
deposits.
Publicdepositsrefertothe unsecureddepositsinvitedbycompaniesfromthe publicmainlytofinance
workingcapital needs.A companywishingtoinvite publicdepositsmakesanadvertisementinthe
newspapers.
Besidesthe issue of shares- equity andpreferenceanddebentures,acompanycanaccept depositsfrom
the publicto finance itsmediumandshort-termrequirementsof funds.Thissource hasbecome very
popularrecentlybecause,acompanyoffersinterestatarate higherthanofferedbybanks.Underthis
method,companiesare able toobtainfundsdirectlyfrompublicwithoutfinancialintermediaries.
Anymemberof the publiccan fill upthe prescribedformanddepositthe moneywiththe company.The
companyinreturn issuesadepositreceipt. Thisreceiptisanacknowledgementof debtbythe company.
The terms andconditionsof the depositare printedonthe backof the receipt.The rate of intereston
publicdepositsdependsonthe periodof depositandreputationof the company.
Meaning of Public Deposits:
The practice of acceptingpublicdepositsbypubliccompaniesinIndiadevelopedduringthe firstquarter
of the 20th centurywhentextile millsof Bombay,AhmedbadandSholapurandteagardensof Assam
and WestBengal acceptedpublicinbanks.Moreover,atthat time,there wasnopublicfinancial
institutionstoprovide mediumandlongtermfinance toindustriesinIndia.The practice inother
industrieswasnotpopular.Inrecentyear,the methodof raisingfinance throughpublicdeposits has
againgainedpopularly.Nowpublicdepositsare acceptedbythe companiesundernon-banking
companies(Acceptance of deposits) rules.The Governmenthaslaiddownlimitsastointerest,
acceptance and renewal of depositsfrompublic.
Companiesacceptdepositsforvaryingperiodsrangingfrom6monthsto 3 yearsat rates of interest
whichare higherthanthose offeredbythe commercial banks.The rate of interestvariesfrom11
percentto 15 percentdependinguponthe periodof deposit andreputationof the company.companies
generallytake helpof financial brokersandotherintermediariesinraisingfundsthroughpublic
deposits.The companyissuesadepositreceiptundertermsandconditionsprintedonthe backof the
depositreceipt.
Publicdepositsare those depositswhichare takenfromthe membersordirectorsof the companyor
fromthe general publicata specifiedrate of interestforaspecifiedperiod.Thismethodof raisingfund
isbecomingpopularatpresentsince the bankcreditisbecomingcostlier.Accordingtothe existing
provisions,acompanycannotaccept anypublicdepositforaperiodof lessthan6 monthsand more
than 36 months.
But inorder to meetthe short-termrequirement(i.e.,workingcapital requirements) depositsupto10%
of paid-upcapital plusfree reservesminusintangible assets,accumulatedlosses,deferredrevenue
expenditure,maybe acceptedfora periodof three months.
At the same time,onand from1st April 1979, no companycan accept or renew depositsinexcessof
35% of its paid-upcapital plusfree reservesasagainstthe limitof 40% up to 31st March 1979.

2. According to the Companies Amendment Rules 1978,here is the list of rules for public
deposits:
The maximum maturity period for a public deposit is 3 years
The minimum maturity period for public deposits is 6 months
The maximum maturity period for a public deposit for Non-Banking Financial Corporation is 5 years
The public deposits of a company cannot go past 25% of free reserves and share capitals
The companies asking for public deposits need to publish information regarding the position and
financial performance of the firm
The companies having public deposits need to keep aside the 10% of the deposits by 30th April
every year that will mature by 31st March next year.
Inter-Company Deposits:
A depositmade byone companywithanothercompany,usuallyforaperiodupto six months,iscalled
inter-companydeposit.
Such inter-company deposits are usually of three types:
(i) Call deposit,
(ii) Three- month’sdeposit,and
(iii) Six-monthsdeposit.
The market forinter-companydepositsinIndiahasbeenexpandingparticularlysince 1973.In the earlier
periods,some bigcompanieswithhuge liquidresourcesattheircommandprimarilykepttoexploit
investmentopportunitiesinthe formof acquisitionandtake-overof othercompanies,investedtheir
liquidfundsinthe formof call depositswithothercompanies.
Withthe restrictionsonworkingcapital financesimposedbythe ReserveBankof Indiain 1973, the
demandforsuch depositsincreasedconsiderably.Anotherimportantfeature of inter-corporate
depositsisthatwhile Sec.58. A of the companiesAct,1956 hasimposedlimitsonborrowingsinthe
formof inter-corporate long-termloans;there is nosuchrestrictiononinter-corporate depositsfor
short-term.
What are public deposits? Why do companies find public
deposits attractive?
Publicdepositsare the source formeetingthe workingcapital needsof the company.Companiesfind
publicdeposits asattractive source due tothe followingreasons:
1) It is more convenienttoborrowfundsinthe form of publicdepositsthanborrowingthe fundsfrom
banksand financial institutions.
2) Borrowingfundsfrombanksand financial institutionsisatediousjobascomparedtoborrowing
fundsfrompublicdeposits.
3) The rate of interestpaidonpublicdepositsislessincomparisonwithotherborrowedfunds.
4) Theyare unsecuredformof borrowing.
5) Fundsraisedfrompublicdepositscanbe usedforany purpose.
6) In case of creditsqueeze publicdepositsplayveryimportantrole.
How is control over Public deposits exercised?
The control overpublicdepositswasexercisedbyintroducingSec58A and58B tothe CompaniesAct,
1956 vide AmendmentAct,1974 and the announcementof Companiesrules,1975 whichappliestothe
nonbankingfinance companies.The mainprovisionof theseregulationsregardingthe applicabilityof
termdepositsisasbelow:

3. Depositscover all typesof loans and depositsexcludingthe following:
1) Amountreceivedfromthe government,local authority,andforeigngovernmentandanyamount
whose repaymentisguaranteedbythe Government.
2) Anyloansfrom Banksor Financial Institutions.
3) Amountreceivedbyacompanyfrom anothercompany.
4) Securitydepositsfromemployees.
5) Advance forpurchase or sales.
6) Amountreceivedforsubscribingtosharesanddebenturespendingallotment.
7) Amountsreceivedintrustoramountsintransit.
8) Amountsreceivedformdirectorsorformshareholdersof aPrivate LimitedCompany.
What requirements does a company need to comply with before
accepting the deposits?
Following are the requirements need to comply with before accepting the deposits:
1) No depositshall be acceptedwhichispayable ondemand.
2) A depositcanbe acceptedfor a minimumperiodof 6monthsand maximumperiodof 36 months.
3) The maximumamountof depositswhichacompanymay acceptwill be 25% of the aggregate of paid
up share capital and free reservesoutof whichnot more than10% shouldbe froma shareholderof non-
private limitedcompaniesorshouldbe guaranteedbyanydirector.
4) The maximuminterestwhichacompanycan payon its depositsdependsuponthe maximumrate of
interestprescribedbythe Reserve Bankof India.
5) The maximumamountof brokerage whichacompanymaypay on depositsacceptedwill be
the followingpercentage of deposits:
- 1 %for depositsuptoone year
- 1.5% for depositsuptotwoyears.
- 2% for depositsuptothree years.
How can a company invite public deposits through
advertisements? What are the details required to be included in
the advertisements?
If a companywantsto invite publicdeposits,itshouldpublishanadvertisementinthe state inwhichthe
registeredoffice of the company issituated.Suchadvertisementshouldbe issuedonthe authorityand
inthe name of the Board of Directorsof the companyandshouldcontaina reference tothe date on
whichthe Board of Directorshas approvedthe textof the advertisement.Followingdetailsare required
to be includedinthe advertisements:
1) Name of the company
2) Date of incorporationof the company
3) Businesscarriedonbythe companyandits subsidiarieswiththe detailsof itsbranches,if any.
4) Particularsof managementof the company
5) Names,addressesandoccupationsof the Directors.
6) Profitsbefore tax andprofitsaftertax,forthe 3 financial yearsimmediatelyprecedingthe date of
advertisement.
7) Summarisedfinancialpositionof the company.
8) The amountof deposits whichcanbe rasiedby the companyand the amountof actual depositsheld
by the companyon the lastday of the immediatelyprecedingfinancial year.

4. 9) A statementshowingamountof overduedepositsif any.
10)A declarationthatthe companyhas complies withthe provisionsof theserules.
11)A declarationthatthe depositsacceptedbythe companyare on unsecuredbasis.
12)A declarationthatthe compliance withthese rulesdoesnotimplythatrepaymentof depositsis
guaranteedbythe Central Government.
What details does a deposit receipt include?
Followingdetailsare includedinadepositreceipt:
1) Date of receipt
2) Name and addressof depositor
3) Amountof deposit
4) Rate of Interest
5) Date of maturity.
Regulation of Public Deposits:
It has alreadybeenstatedabove thatsince 1967 RBI has startedto regulate andcontrol publicdeposits
acceptedbynon-bankingcompanies.The regulationsandprovisionswere introducedinJanuary1967.
These rulesandprovisionswere modified’revisedandmade more comprehensivefromtime totime in
orderto exercise control overthese depositsand.atthe same time,offeredreasonableprotectionto
the lendersordepositholders.
Again,duringI967, the companiescouldacceptdepositstothe extentof 25% of paid-upcapital plus
free reservesHowever,fromJanuary,1072, the deposits(inthe formof unsecuredloans) guaranteedby
the directorsand the depositsraisedfromshareholderswere alsobroughtunderthe depositcontrol
scheme.
In January1975 the ceilingof 25% of paidupcapital plusfree reserveshadcome downto15% and
again,at recenttimes,itcomesfurtherdownto10% of the saidpaid-upcapital plusfree reservesItwas
operatedfrom1st April 1979 and consequentlythe companiesbroughtdowntheirpublicdepositsto
the limitof 1st April 1980.
Everycompanyshall investnotlessthan10% of the amountof itsdepositsmaturingduringthe year
endingon31st March nextfollowinginacurrent or otheraccount witha scheduledbankfree fromany
charge of lien,orinapprovedsecurities.
It will ensure the liquidityof publicdepositsandguaranteedrepaymentof maturingdepositswhich
cannot be renewedThe amountsodepositedorinvestedshall be utilisedonlyforthe repaymentof
depositmaturingduringthe respective year.
If the depositsare acceptedincontraventionof the limitsprescribedbythe Central Govt.amandatory
fine whichshall notbe lessthanan amountequal tothe amount of the defaultingdepositwhichhas
alreadybeenacceptedand at the same time where the contraventionisone of invitingdepositsin
excessof prescribedlimits,afine notlessthanRs.5,000 and not more than Rs 1,00,000 shall be
imposed.
Effective Rate of Interest on Public Deposits:
The normal rate of interest onpublicdepositsvariesfrom12% to 16% p.a. inIndiaIt isinterestingto
note that the actual cost of publicdepositsismore incomparisonwiththe nominalcostThisisdue to
the fact that incase of otherlong-termorshort-termborrowingsthe entire amountof interestcostisan
admissiblecharge againstthe revenue whilecomputingtaxableprofit.
But incase of publicdeposit,maximumlimitisfixedat85% of the total interestcost,i.e.15% of such
interestisactuallydisallowedwhich,inother words,increasesthe real costof funds.

5. Therefore, the real cost of fundswhich are suppliedby publicdepositsmay be calculatedwith the
helpof the followingformula:
We have consideredsofaronlyone aspect,i.e.,taxationeffect.But there are otheraspectsalsoFor
instance,acertainamountis to be incurredonaccount of brokerage/advertisement,forms,etc.
Moreover,like bankfinance,currentflowof fundsdoesnotreduce the blockof liabilitywhichconforms
till repayment.
At the same time,unproductiveinterestcostonthe fundsmustbe set aside andto be heldas liquid
assetsunderRule 3 A of the Companies(Acceptance of Deposits) Rules1975.
As such, after consideringall the relatedfactors, the effective costof public depositscan be computed
with the help of the following:
The above financial canbe illustratedwiththe helpof the followingillustration:
Illustration:
From the following particulars, compute the effective rate of
public deposits:
Rate of Intereston publicdepositsis@20%.
Numberof yearsis3.
Rate of taxationis50%.
Brokerage @ 1% and FlotationCost@ ½ %.
Solution:
Thus,the real cost of publicdepositsmayrise tosuchan amountwhichexceedsthe costof othertypes
of bankfinance,viz.,cash-credit,term-loansoroverdraftetc.
Merits of Public Deposits / Advantages of Public Deposits:
Public deposits offer the following advantages:

6. i. Acquisitionoffinance through public depositsisvery easy.
ii.Interest paidon publicdepositsis tax deductible expenditure.
iii.Administrative cost of issuinga publicdepositis lower than the cost involvedinissuingshares and
debentures.
iv. Since the rate of interestpaid on a publicdepositis fixed,ithelpsthe company play trading on
equity.
v. It does not dilute the control of shareholders.
The various advantages of public deposits enjoyed by the companies are:
There is no involvement of restrictive agreement
The process involved in gaining public deposit is simple and easy
The cost incurred after tax is reasonable
Since there is no need to pledge security for public deposits, the assets of firm that can be
mortgaged can be preserved
As a source of finance, public deposits have the following
advantages:
I. It isbeneficialtothe companyacceptingdepositssinceitreceivefinance atalowerratesof interest
than chargedby the banksand special financialinstitutionsonlending.
II.Interestpaidondepositsisa deductibleexpense forincome tax purpose.
III.Administrative costof depositsislowerthanthatinvolvedinissuingsharesanddebentures.The
companyhas to fulfil lesserformalitiesinacceptingpublicdeposits.
IV.As the rate of interestonpublicdepositsisfixed,ithelpsthe companytoplaytradingonequity,if
the companyis earningmore thanthe rate of interestpaidonpublicdeposits.
V.Depositorshave nointerference inthe managementandcontrol of the affairsof the companyas they
have no votingrights.Thus,there isnodilutionof control of shareholders.
VI.Publicdepositsare notbackedbyany charge on the assetsof the company.The companymay accept
charge onits assetswhile raisingloansfromothersourceslike banksandfinancialinstitutions.
VII.Capital structure of the companyremainsflexible byacceptingpublicdeposits.Companycanrepay
the depositswhentheyare notrequiredbythe company.
1. Simplicity:
Publicdepositsare averyconvenientsource of businessfinance.Nocumbersome legal formalitiesare
involved.The companyraisingdeposits hastosimplygive anadvertisementandissue areceipttoeach
depositor.
2. Economy:
Interestpaidonpublicdepositsislowerthanthatpaidon debenturesandbankloans.Moreover,no
underwritingcommission,brokerage,etc.hastobe paid.Interestpaidonpublicdepositsistax
deductible whichreducestax liability.Therefore,publicdepositsare acheapersource of finance.
3. No Charge on Assets:
Publicdepositsare unsecuredand,therefore,donotcreate anycharge or mortgage on the company’s
assets.The companycan raise loansinfuture againstthe securityof itsassets.
4. Flexibility:

7. Publicdepositscanbe raisedduringthe seasontobuyraw materialsinbulkandforothershort-term
needs.Theycanbe returned whenthe needisover.Therefore,publicdepositsintroduce flexibilityin
the company’sfinancial structure.
5. Trading on Equity:
Interestonpublicdepositsispaidata fixedrate.Thisenablesacompanyto declare higherratesof
dividendtoequityshareholdersduringperiodsof goodearnings.
6. No Dilution of Control:
There isno dilutionof shareholders’control because the depositorshave novotingrights.
7. Wide Contacts:
Publicdepositsenable acompanytobuildupcontacts witha widerpublic. These contactsprove helpful
inthe sale of sharesand debenturesinfuture.
Demerits of Public Deposits / The disadvantages of public
deposits are:
The method of raising funds through public deposits suffers
from the following limitations disadvantages:
Public deposits has the following disadvantages:
i. They are uncertain and unrealisticforms offinancing.
ii. The newcompany findsit difficulttoraise publicdeposites
ii.Public depositsare available for short periodsonly.
iii.The managementmay misuse the depositas these depositsare not secured.
The disadvantages of public deposits from the company’s point of view are:
The maturity period is short enough
Limited fund can be obtained from the public deposits
I. Publicdepositsare fairweather friends’.Itisanuncertainandunrealisticfromof financing.When
depositorsfeel thatthe companyisina shakyposition,theymaynotrespondtofreshdepositsormay
start withdrawingtheirexistingdeposits.
II.Publicdepositsare available mainly forshortperiod.Companycannotdependonthissource of
finance foritslong-termrequirements.
III.The managementmaymisuse the depositsassuchdepositsare notsecured.Companymayuse them
as it likes.
IV.Publicdepositsare generallynotavailabletonew companiesorcompanieswithuncertainearnings.
V.There are legal restrictionsonthe acceptance andrenewal of publicdeposits.A companycannotraise
unlimitedamountfromthissource.
VI.Receivingpublicdepositscreate unhealthytrendsincapital market.There are numerousratesof
interestofferedbydifferentcompanies.
Thissource of raisingfinance isvalidonlyforshort-termfinancial needsof the company.Recentlythis
methodhasgainedpopularitytothe extentthatgovernmentcompaniesstartraisingfinance through
thissource.
1. Uncertainty:
Publicdepositsare anuncertainandunreliable source of finance.The depositorsmaynotrespondwhen
economicconditionsare uncertain.Moreover,theymaywithdraw theirdepositswheneverthey feel
shakyabout the financial healthof the company.

8. Depositorsare entitledtowithdrawtheirdepositsatanytime aftergivingpriornotice tothe company.
Duringtimesof financial tightnessordistressthe depositorsmaygetpanickyandwishtowithdrawtheir
deposits.
Moreover,if a large numberof depositorssimultaneouslywithdraw theirdepositsduringslump,the
companymay finditdifficulttorepayahuge sum at once.Therefore,publicdepositsare describedas
‘fairweatherfriends’.
2. Limited Funds:
A limitedamountof fundscanbe raisedthroughpublicdepositsdue tolegal restrictions.
3. Temporary Finance:
The maturityperiodof publicdepositsisshort.The companycannotdependuponpublicdepositsfor
meetinglong-termfinancial needs.
4. Speculation:
As publicdepositscanbe raisedeasilyandquickly,acompanymaybe temptedtoraise more fundsthan
it can profitablyuse.Itmaykeepidle moneytomeetfuture contingencies.The managementof the
companymay indulge inover-tradingand speculationwhichexercise harmful effectsonthe business.
5. Hindrance to Growth of Capital Market:
Publicdepositshamperthe growthof a healthycapital marketinthe country.Widespreaduse of public
depositscreatesashortage of industrial securities.
6. Limited Appeal:
Publicdepositsdonotappeal asa mode of investmenttoboldinvestorswhowantcapital gains.
Conservative investorsmayalsonotlike these depositsinthe absence of propersecurity.
7. Unsuitable for New Concerns:
New companieslackinginsoundcreditstandingcannotdependuponpublicdeposits.Investorsdonot
like todepositmoneywithsuchcompanies.
Category # 2. Investor’s Point of View:
It isnot onlythe companywhichisbenefitedfrompublicdeposits;the investorsalsofindcertain
advantagesinpublicdeposits.We canevaluate the advantagesof publicdepositsfromthe investor’s
pointof viewintermsof rates of interestandthe maturityperiod.
(i) Rate of Interest:
The rates of interestpayable onpublicdepositsare usuallyhigherthanthe alternative sourcesof safer
investmentssuchasbanks,postoffices,etc.Inspite of the ceilingonmaximumrate of interest,itisstill
fairlyreasonable.
Although,income frominterestonpublicdepositsistaxable forthe investorandtax is deductedat
source if the income exceedsRs.1000, ithas not reducedthe effective rate of returnonpublicdeposits
inmany casesas investorshave beenavoidingtax onsuchincome due tovariousloopholesinthe
system.
(ii) Maturity Period:
Short maturityperiodof publicdepositsoffersanotheradvantage tothe investors.
However,the riskof the investorinpublicdepositsismuchhigherthaninvestmentinbankdeposits,
postoffices,insurance companies,etc.;asno securityof assetisofferedbycompaniesonpublic
deposits.Further,unlikebankdeposits,publicdepositsare neithercoveredbyanyinsurance norare
guaranteedbythe Govt.
In manycasescompanieshave notpaidinterestondue datesandevenrepaymentschedule of public
depositshasnotbeenhonoured.

9. Many investorsdonotpreferpublicdepositsbecause of non-exemptionof interestincome forincome
tax purposes.Moreover,publicdepositsare notasliquidassetasbankdeposits.Aninvestorcaneasily
withdrawhisdepositfromabankbut not froma company.
In additiontothese limitationsfromthe investor’spointof view,publicdeposits,inmanycases,
encourage non-prioritysectorsof productionanddefeatthe verypurpose of the restrictive creditpolicy
of the Reserve Bankof India.
The advantages of public deposits enjoyed by the investors
are:
The interest rate is higher than the other financial investment instruments
The fund maturity period is short
The disadvantages of public deposits from the investors’
pint of view are:
The interest that is charged on the public deposits does not enjoy tax exemption
There is no pledging of security against public deposits
Regulating Public Deposits
The public deposits are regulated by the provisions of the Companies Act and the Companies (Acceptance
of Deposit) Rules,1975. According to them, the following amounts are not included in the expression
'deposits':-
 Any amount received from the Central Government or a State Government, local authority, foreign
Government, any foreign citizen or authority or any other source whose repayment is guaranteed by
the Central Government or a State Government
 Any amount received as a loan from any banking company, State Bank of India or its subsidiaries, a
nationalised bank or co-operative bank
 Any amount received as a loan from any of the notified financial institutions
 Any amount received by a company from any other company
 Any amount received from an employee of the company by way of security deposit
 Any amount received by way of security or as an advance from any purchasing, selling or other
agents in the course of or for the purposes of the business of the company
 Any amount received by way of subscriptions to any shares, stock, bonds or debenture pending the
allotment of such shares, etc., and calls in advance on shares
 Any amount received in trust or any amount in transit
 Any amount received from directors of the company or from its shareholders by a private company
 Any amount of unsecured loans brought in by the promoters in pursuance of stipulations of financial
institutions or loans provided by the promoters themselves and/or by their relatives but not by their
friends and business associates.
Under the Companies Act and the rules framed thereunder, the invitation and acceptance of deposits by
companies is subjected to the following conditions:-
 Companies are not permitted to raise unlimited amounts of fund through public deposits. The
aggregate of all outstanding deposits cannot exceed certain prescribed percentage of the paid up
capital and free reserves of the company.

10.  Invitations of deposits by a company can be made only by means of an advertisement specifying
the financial position, management structure and other particulars relating to a company. A
company which has defaulted in repayment of deposit or interest thereon is prohibited from inviting
deposits.
 The depositors shall fill the application form supplied by the company. The company in return issues
a deposit receipt which is an acknowledgement of debt by the company. The terms and conditions
of the deposit are printed on the back of the receipt. The company shall maintain a register of
deposits containing the prescribed particulars and file returns of deposits duly certified by their
auditor with a Registrar on or before 30th June of every year.
 The interest to be allowed on such deposits by the company must be in accordance with the rate
fixed by the Government. The rate of interest on deposits also varies depending upon the period of
deposit and the reputation of the company.
The Companies (Amendment) Act,2000 has inserted certain new sections, in order to protect the
interests of small depositors. The expression 'small depositor' means ''a depositor who has deposited (in a
financial year) a sum not exceeding twenty thousand rupees in a company and includes his successors,
nominees and legal representatives". In case of any default by the company in paying back to them, it shall
inform the Company Law Boardwithin sixty days from the date of default. The Company Law Board will
then direct the company to repay to small depositors within a period of thirty days from the date of receipt
of intimation of default. On failure to comply with the orders of the Board, the company and its directors
shall be punishable with imprisonment and payment of daily fine during the period in which such non -
compliance continues. However, if such a defaulting company wants to invite deposits from small depositors,
it shall state the complete nature of default in all its future advertisements and application form.
Besides, the Reserve Bank of India issues directives from time to time for regulating public deposits.
These are aimed at safeguarding the interest of the public and to give them a feeling of security in investing
in the public deposits. These regulations pertain to:-
 The ratio of deposits to the paid-up capital and free reserves of the company
 The maximum duration of the deposits
 Obligation to invest a specified percentage of the deposit in a current or other account with a
scheduled bank free from any charge or lien, or in approved securities which shall be used only for
the repayment of deposits
 The filing of periodical returns with the RBI, giving the required information about public
deposits/loans as well as furnishing of certain specified information on its financial position and
working.