Debenture redemption reserve

Technically Current Account is also a deposit account and the same should  be eligible for DRR  also.  However, you will have to maintain required 15% amount as minimum balance throughout the year.  Further, if it is used for usual payments for business purpose also, compliance of  Rule 18(7)(c)(v) will be difficult.  In order to avoid loss of interest in current account it will be advisable to make FDR for the amount.

Thank you sir,

One more thing is that Company will be use that fund only for redemption purpose.

Dear  Sir/Ma'am, 

Is it mandatory to create Debenture redemption reserve in case there is a loss in the Company ? Kindly Provide Clarification and reference to provisions of Companies Act in support of your answer.