Mandatory Cover for Public Deposits

There is an enabling provision in Section 73 (2) (d) of the Companies Act whereby Companies permitted to accept deposits from the public will be required to “provide such deposit insurance in such manner and to such extent as may be prescribed”. Giving this information in written reply to a question in the Lok Sabha, Minister of Corporate Affairs, Shri Sachin Pilot, said that the operationalization of this provision would require framing of suitable rules in consultation with the Reserve Bank of India.