Premature repayment of deposits made after the company has held the deposit for 12 months attracts interest at:

1. Rule 15 — on premature repayment, interest is paid at 1% less than the contracted rate, provided the deposit has been held for at least 6 months. 2. If held for less than 6 months, premature repayment is generally not permitted (except in distress cases without interest). 3. Hence (B). _Source: ICAI BoS CA Inter Paper 2 — Acceptance of Deposits_