Deposits/ Debenture reserve

Companies issuing deposits or debentures as per the provisions of the companies act, 2013 and the rules thereunder are required to keep some amount of their outstanding deposits/ debetures as deposit in a scheduled commercial bank. It should be kept in a separate bank account and named as deposit reserve account or debenture reserve account. The limits for keeping such amounts in the banks are 20% for deposits and 15% for debentures. In both cases, the amount should be secured into the bank account on or before 30th April each year. This year in view of the Covid pandemic, govt. extended this date to 30th June, 2020 and now vide MCA circular dated 19th June, 2020 this date has been further extended to 30th September, 2020.

MCA circular can be found here

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