Public deposits cannot exceed ______.

Question

KollegeApply · Accepted Answer

Public deposits cannot exceed 25% of share capital and free reserves. Explanation: A public corporation may accept public deposits up to 25% of its share capital and free reserves in accordance with the Companies (Acceptance of Deposits) Rules, 2014, which are governed by the Companies Act, 2013. • The limit is in place to safeguard depositor interests and lower the company’s financial risk. • While NBFCs are subject to different rules, private corporations are subject to much more stringent limitations.

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