Public deposits can be renewed after the maturity period. - Vidyadip

Question

Public deposits can be renewed after the maturity period.

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Answer

Deposits are unsecured loans offered to the company.
Deposits can be accepted for a minimum period of 6 months and a maximum period of 36 months.
If the Depositor agrees, deposits can be renewed for a further period.
Renewal may take place with the same terms and conditions or maybe with different terms and conditions.
For renewal, the depositor has to submit the old deposit receipt with the renewal request.
The company will cancel the old deposit receipt and issue the new deposit receipt.
The depositor enjoys a fixed rate of interest till further maturity.
Thus, it is rightly said that Public deposits can be renewed after the maturity period.

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