Interest rate ceiling: companies must link deposit interest to the maximum rate applicable to non bank financial company public deposits. The amendment replaces the fixed 'twelve and a half percent' benchmark in rule 3(1)(c) of the Companies (Acceptance of Deposits) Rules, 1975 with the phrase linking the permissible rate to 'the maximum rate of interest prescribed by the Reserve Bank of India that the Non Banking Financial Companies can pay on their public deposits,' thereby tying deposit interest limits to the ceiling applicable to NBFC public deposits; the Rules take effect on publication in the Official Gazette.
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Provisions expressly mentioned in the judgment/order text.
Interest rate ceiling: companies must link deposit interest to the maximum rate applicable to non bank financial company public deposits.
The amendment replaces the fixed "twelve and a half percent" benchmark in rule 3(1)(c) of the Companies (Acceptance of Deposits) Rules, 1975 with the phrase linking the permissible rate to "the maximum rate of interest prescribed by the Reserve Bank of India that the Non Banking Financial Companies can pay on their public deposits," thereby tying deposit interest limits to the ceiling applicable to NBFC public deposits; the Rules take effect on publication in the Official Gazette.
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