Acceptance of Deposits on Non-Repatriation Basis from NRl/PIO/OCBs

Resident (External) Account or Foreign Currency (Non-Resident) (Bank) Account maintained with an authorised dealer / authorised bank in India.
(iv) If the deposit accepting company is a NBFC, the rate of interest payable on deposits shall be in conformity with the guidelines/ directions issued by Reserve Bank for such companies. In other cases, the rate of interest payable on deposits shall not exceed the ceiling rate prescribed from time to time under the Companies (Acceptance of Deposit) Rules, 1975.
(v) The maturity period of deposits shall not exceed 3 years.
(vi) The company accepting the deposits shall comply with the provisions of any other law, rules, regulations, orders issued by the Government of India or any other competent authority, as are applicable to it in regard to acceptance of deposits.
(vii) The amount of aggregate deposits accepted by the company shall not exceed
35% of its net owned funds.
(viii) The payment of interest net of taxes may be made by the company to the
depositor by remittance through an authorised dealer or by credit to the
depositor's NRE/FCNR (B)/NRNR/NRO /NRSR account as desired by him.
(ix) The amount of deposits so collected shall not be utilised by the company for re-Iending (not applicable to a Non-Banking Finance Company) or for undertaking agricultural/plantation activities or real estate business or for investing in any other concern, firm or a company engaged in or proposing to engage in agricultural/plantation activities or real estate business.
(x) The repayment of the deposit may be made by the company to the depositor by remittance from India through an authorised dealer or by credit to the depositor's NRE/FCNR (B) account maintained with an authorised dealer in India provided the depositor continues to be a non-resident at the time of repayment.
(xi) The amount representing repayment of deposit may also be credited to the
depositor's NRNR/NRO or NRSR account, at the depositor's option.
Acceptance of Deposits on Non-Repatriation Basis from NRl/PIO/OCBs
A company incorporated in India (including a non-banking finance company registered with Reserve Bank) may accept deposits on non-repatriation basis from NRIsjOCBs, subject to the following conditions:
(i) In the case of a company, the deposits may be accepted either under private
arrangement or under a public deposit scheme.
(ii) If the deposit accepting company is a non-banking finance company, it should be registered with the Reserve Bank and should have obtained the required credit rating as stipulated under the guidelines issued by Reserve Bank for such companies.
(iii) The maturity period of deposit shall not exceed 3 years.
(iv) If the deposit accepting company is a non-banking finance company the rate
of interest payable on deposits shall be in conformity with the guidelines/directions issued by Reserve Bank for such companies. In other cases, the rate of interest payable on deposits shall not exceed the ceiling rate prescribed from time to time under the Companies (Acceptance of Deposit) Rules, 1975.