Interest on public deposits reduced

By Our Special Correspondent

NEW DELHI, JUNE 4. The Department of Company Affairs (DCA) has issued a notification reducing the maximum permissible interest payable on public deposits by manufacturing companies and non- banking finance companies (NBFCs) from 15 per cent per annum to 14 per cent per annum. The new rates would come into effect immediately.

The amendment to the Companies (Acceptance of Deposits) Rules, 1975 follows a similar amendment by the Reserve Bank in the rules governing public deposits in the NBFCs, reducing by one per cent the optimum interest on public deposits.

The DCA notification has been issued in consultation with the Reserve Bank under Section 58A read with Section 642 of the Companies Act, 1956.

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