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The mandatory minimum amount a company must deposit by 30th April each year in its Deposit Repayment Reserve, as a fraction of next-year maturing deposits, is:
AAt least 50%
BAt least 30%
CAt least 20%
DAt least 10%
Answer & Solution
Correct answer: C. At least 20%
1. Rule 13 prescribes that the company must deposit, on or before 30th April, an amount not less than 20% of the deposits maturing during the following financial year.
2. This is a continuing obligation till all deposits are repaid.
3. Hence (C).
_Source: ICAI BoS CA Inter Paper 2 — Acceptance of Deposits_