(1) Every company referred to in sub-section (2) of section 73 and every
other eligible company inviting deposits shall enter into a contract for
providing deposit insurance at least thirty days before the issue of circular or
advertisement or at least thirty days before the date of renewal, as the case
may be.
Explanation- For the purposes
of this sub-rule, the amount as specified in the deposit insurance contract
shall be deemed to be the amount in respect of both principal amount and
interest due thereon.
4 “Provided
that the companies may accept deposits without deposit insurance contract till
the 31st March, 2018 or till the availability of a deposit insurance product,
whichever is earlier.”
(2) The deposit insurance contract shall specifically provide
that in case the company defaults in repayment of principal amount and interest
thereon, the depositor shall be entitled to the repayment of principal amount of
deposits and the interest thereon by the insurer up to the aggregate monetary
ceiling as specified in the contract:
Provided that in the case of any deposit and interest not
exceeding twenty thousand rupees, the deposit insurance contract shall provide
for payment of the full amount of the deposit and interest and in the case of
any deposit and the interest thereon in excess of twenty thousand rupees, the
deposit insurance contract shall provide for payment of an amount not less than
twenty thousand rupees for each depositor.
(3) The amount of insurance premium paid on the insurance of
such deposits shall be borne by the company itself and shall not be recovered
from the depositors by deducting the same from the principal amount or interest
payable thereon.
(4) If any default is made by the company in complying with
the terms and conditions of the deposit insurance contract which makes the
insurance cover ineffective, the company shall either rectify the default
immediately or enter into a fresh contract within thirty days and in case of
non-compliance, the amount of deposits covered under the deposit insurance
contract and interest payable thereon shall be repaid within the next fifteen
days and if such a company does not repay the amount of deposits within said
fifteen days it shall pay fifteen per cent. interest per annum for the period of
delay and shall be treated as having defaulted and shall be liable to be
punished in accordance with the provisions of the Act.
Amendments
1. Inserted by the Notification
Dated 6th June, 2014. [Superseded & Substituted - Refer
Notification Dated-31st March, 2015.]
2. Substituted by the Notification
Dated 31st March 2015.
In rule 5, in sub-rule (l),
for the proviso, i.e.
“Provided that the companies may accept the deposits without
deposit insurance contract till the 31st March, 2015.”
the following proviso shall
be substituted, namely:-
"Provided
that the companies may accept deposits without deposit insurance contract till
the 3lst March, 2016 or till the availability of a deposit insurance product,
whichever is earlier".
3. Substituted by the Notification
Dated 29th June, 2016.
In rule 5 of the principal
rules, in sub-rule (1), for the proviso,-
"Provided that the companies
may accept deposits without deposit insurance contract till the 31st March, 2016
or till the availability of a deposit insurance product, whichever is
earlier"
the following proviso shall
be substituted, namely:
“Provided that the
companies may accept deposits without deposit insurance contract till the 31st
March, 2017 or till the availability of a deposit insurance product, whichever
is earlier.”
4. Substituted
by the Notification Dated 12th May, 2017.
In rule 5 of
the principal rules, in sub-rule (1), for the proviso,-
1 , 2 & 3[“Provided that the companies may accept deposits without deposit
insurance contract till the 31st March, 2017 or till the availability of a
deposit insurance product, whichever is earlier.”]
the following
proviso shall be substituted, namely:
“Provided
that the companies may accept deposits without deposit insurance contract till
the 31st March, 2018 or till the availability of a deposit insurance product,
whichever is earlier.” |