Whether banks can invest in fixed deposits of non-financial companies?
There is no prohibition on banks’ placing of funds with non-banking non-financial companies under their Public Deposit Schemes. However, investment in the Public Deposit Scheme of such companies should be classified by banks as loans/ advances in their balance sheet and returns submitted under the Banking Regulation Act, 1949 and the Reserve Bank of India Act 1934.
Related Questions
- Back to Top of Index Question-84: Do NRI need permission of Reserve Bank for placing funds in fixed deposits with firms/companies on non-repatriation basis ?
- Do NRIs need permission from the Reserve Bank for placing funds in fixed deposits with firms/companies on a non-repatriation basis ?
- Whether banks can invest in fixed deposits of non-financial companies?
