ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Restrictions on Public Deposits Unwise

Restrictions on Public Deposits Unwise GRADUALLY the Reserve Bank has been tightening its control over public deposits with companies. First the power to obtain statistics and to impose control was assumed under the Banking Laws (Miscellaneous Provisions) Act, 1963. This was followed by a survey (inadequate, as shown below) of the extent of deposits with companies. Then came the restriction on acceptance of deposits for less than one year; and now there is the prohibition of acceptance of deposits above 25 per cent of share capital and reserves, with a two- year period for existing deposits above the limit fixed to be sealed down.

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