About Us     Useful Information     FAQs     Financial Education     Complaints   Important Websites  
Home >> Notification - Display
Note : To obtain an aligned printout please download the (41.00 kb ) version to your machine and then use respective software to print the story.
Date: 09/12/2005
Premature repayment of public deposits or deposits

RBI / 2005-06 / 231
DNBS (PD) C.C. No. 60/ 02.01 / 2005-06

December 9, 2005


All Non-Banking Financial Companies (NBFCs),
Miscellaneous Non-Banking Companies (MNBCs) and
Residuary Non-Banking Companies (RNBCs)

Dear Sirs,

Premature repayment of public deposits or deposits

Please refer to our circular DNBS PD) C.C. No. 44/02.01/2004-05 dated October 5, 2004 on the captioned subject. In paragraph 3(5) of the said circular, it has been provided that all deposit accounts standing to the credit of sole/first named depositor in the same capacity shall be clubbed and treated as one deposit account for the purpose of premature repayment.

2. It is emphasized that the said clause of clubbing of deposits is applicable in case of problem NBFC/RNBC/MNBC only and to clarify the position same has been amended. The amending Notifications Nos. 182-184 of date as also the Notifications Nos.

a. DFC. 118 /DG (SPT) – 98 dated January 31, 1998;

b. DFC. 55 / DG (O) – 87 dated May 15, 1987; and

c. DNBC. 39 / DG (H) – 77 dated June 20, 1977

(as amended up-to-date) are enclosed for your information and meticulous compliance.

3. Thus, the clause relating to clubbing of all deposit accounts, standing to the credit of sole/first named depositor in the same capacity, for the purpose of premature repayment/grant of loan, as the case may be, of an amount upto Rs 10000/- to the depositor is applicable only in case of problem NBFC/RNBC/MNBC.

4. We reiterate that in case of death of depositor, even the problem NBFC/RNBC/MNBC may repay the deposit/public deposit even within lock in period without clubbing of deposit/public deposit.

5. Please acknowledge receipt to the Regional Office of the Department of Non-Banking Supervision, Reserve Bank of India under whose jurisdiction the Registered Office of your company is situated.

Yours faithfully,


(P. Krishnamurthy )
Chief General Manager-in-Charge

  © Reserve Bank of India. All Rights Reserved.

Best viewed in 1024x768 resolution in IE 5 and above.