Monday, August 1, 2016

Can any company raise public deposits?

Non banking finance companies are permitted to accept term deposits namely recurring deposit and fixed deposit from the public and they cannot accept deposits which are repayable by means of cheques - savings and current deposits.
However, companies in general collect funds in the form of commercial paper and commercial papers are issued at a discount
Companies which have the required credit rating are allowed to issue commercial papers. This cannot be termed as deposits; however, they look like fixed deposits accepted for a quarter and more

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