As per rule 3(C) of Acceptance of Deposit Rules, 1975:-
"No company shall invite or accept or renew any deposits in any form on a rate of interest exceeding........ per annum at rests which shall not be shorter than monthly rests."
What does it means?
According to me...
1.The rate of interest shall not exceed as may be prescribed i.e. 12.5%
2.The rest of interest shall not be shorter than monthly. Therefore, interest cannot paid by the company on days.
Contrary views are welcome.
CAclubindia
