Public Deposits - Acceptance of ‑ Scope and provision of Companies (Acceptance of Deposits) Rules, 1975 explained - Companies Law - Circular : No. 4/14/80‑CL‑X,

Circular : No. 4/14/80‑CL‑X, dated 5‑8‑1980. Subject:- Public Deposits - Acceptance of ‑ Scope and provision of Companies (Acceptance of Deposits) Rules, 1975 explained Rule 10 : SUBMISSION OF RETURN OF DEPOSITS WITH THE REGISTRAR Under rule 10 each non‑banking non‑financial company holding deposits is required to file with the Registrar of Companies, a return of deposits as on March 31 of a year in the prescribed form, on or before June 30 of that year. A copy of this return of deposits is required to be sent simultaneously to the Reserve Bank of India, Department of Non‑Banking Companies, Calcutta. The returns of deposits are used by the Reserve Bank of India for compiling annual surveys of deposits with the non‑banking corporate sector. The Reserve Bank of India has reported to the Government that most of the companies do not furnish copies of returns to the Reserve Bank of India within the prescribed time. According to the Reserve Bank, it receives approximately 25 per cent of the returns before June 30 and another 25 per cent after a delay of 9‑12 months. Up to 30‑6‑1980, the Reserve Bank of India is reported to have received only 8‑12 such returns as against about 4,000 returns expected to be received. Delays in submission of the returns of deposits to the Reserve Bank resulted in inordinate delay in the publication of the findings of the surveys in the Bank s Bulletin. Thus the surveys as on 31‑3‑1975 and 1976 were published in October 1978 and December 1979, respectively, i.e., after a gap of three years and this delay did attract criticism for the Bank. In view of the position stated above, the Chambers of Commerce are requested to direct their constituents to submit the returns of deposits as on 31st March each year to the Registrar of Companies concerned and the Reserve Bank of India well in time so as to reach them by 30th June of that year. It may be noted that non‑submission of return of deposits by June 30 attracts penal provisions of rule 11.