alleryStart learning →The separate bank account under section 73(2)(c) is called what?
ADebenture redemption reserve
BDeposit repayment reserve account
CUnclaimed deposit account
DDeposit insurance account
Answer & Solution
Correct answer: B. Deposit repayment reserve account
The Act names the separate account the deposit repayment reserve account, set up to safeguard repayment of maturing deposits.
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Related questions
Where must a company inviting public deposits upload the circular?A deposit circular stays valid for how long after the financial year closes (at most)?Who signs the circular copy sent to the Registrar under Rule 4(5)?On whose authority and name must a deposit circular be issued?An eligible company's public deposit circular is issued in which form?A section 73(2) company can send its member circular by which mode?After issuing the circular, what may a company not reserve a right to do?Who alone is entitled to brokerage on deposits procured for a company?