Companies Act: Updated Deposit Interest Rate Categories

Ministry of Finance and Company Affairs has issued an amendment on April 9, 2003, to the Companies (Acceptance of Deposits) Rules, 1975. The amendment updates deposit interest rate categories, adding specific rate bands in Parts I and IV of the form, ranging from “free of interest” to “more than 12.5%.” These changes clarify interest brackets applicable to deposits, aiming to improve compliance and transparency in deposit-taking by companies. The amendment takes effect from its publication date in the Official Gazette.

MINISTRY OF FINANCE AND COMPANY AFFAIRS
DEPARTMENT OF COMPANY AFFAIRS

NOTIFICATION

NEW DELHI, THE 9th APRIL, 2003

G.S.R. 323(E).- In exercise of the powers conferred by section 58A read with section 642 of the Companies Act, 1956 (1 of 1956), the Central Government, in consultation with the Reserve Bank of India, hereby makes the following rules further to amend the Companies (Acceptance of Deposits) Rules, 1975, namely:-

1. (1) These rules may be called the Companies (Acceptance of Deposits) (Second Amendment) Rules, 2003.

(2) They shall come into force on the date of their publication in Official Gazette.

2. In he Companies (Acceptance of Deposits) Rules, 1975, in the Form, in Part-I,-

(i) in tem 2, for sub-item (b) the following sub-item shall be substituted, namely:-

“(b) (i) Free of interest 831

(ii) Below 6% 832

(iii) 6% or more but less than 9% 833

(iv) 9% or more but less than 11% 834

(v) 11% or more but less than 12.5% 835

(vi) at 12.5% 836

(vii) more than 12.5% 837

(viii) Total 830 “;

(ii) in item 4, for sub-item (b) the following sub-item shall be

substituted, namely:-

“(b) (i) Free of interest 881

(ii) Below 6% 882

(iii) 6% or more but less than 9% 883

(iv) 9% or more but less than 11% 884

(v) 11% or more but less than 12.5% 885

(v) at 12.5% 886

(vi) more than 12.5% 887

(vii)Total 880 “;

F.NO. 5/12/2001-CL-V]

RAJIV MEHRISHI

Joint Secretary

Foot Note:- The Companies (Acceptance of Deposits ) Rules, 1975 published vide Notification   No. G.S.R. 43(E) dt. 3-2-1975, Part II, Section 3, Sub-section (i) of the Gazette of India (Extraordinary) dated 3-2-1975, subsequently amended by Notifications No :-