Invitation of deposits requires prescribed statutory advertisement; non compliant announcements expose companies to penalties under deposit law.

Announcements that merely notify alterations in deposit terms, including changes in interest rates, are amendments to earlier statutory advertisements and do not amount to an invitation of deposits. If the announcement, however, indicates continued acceptance of deposits, higher rates for renewals or fresh deposits, or availability of application forms with the company or its agents, it constitutes an invitation of deposits and must be published in the statutory form prescribed by the Companies (Acceptance of Deposits) Rules; non compliance attracts statutory penalties.

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