December 9, 2005

To,

All Non-Banking Financial Companies (NBFCs),
Miscellaneous Non-Banking Companies (MNBCs) and
Residuary Non-Banking Companies (RNBCs)

Dear Sirs,

Please refer to our circular DNBS PD) C.C. No. 44/02.01/2004-05 dated October 5, 2004 on the captioned subject. In paragraph 3(5) of the said circular, it has been provided that all deposit accounts standing to the credit of sole/first named depositor in the same capacity shall be clubbed and treated as one deposit account for the purpose of premature repayment.

2. It is emphasized that the said clause of clubbing of deposits is applicable in case of problem NBFC/RNBC/MNBC only and to clarify the position same has been amended. The amending Notifications Nos. 182-184 of date as also the Notifications Nos.

a. DFC. 118 /DG (SPT) – 98 dated January 31, 1998;

b. DFC. 55 / DG (O) – 87 dated May 15, 1987; and

c. DNBC. 39 / DG (H) – 77 dated June 20, 1977

(as amended up-to-date) are enclosed for your information and meticulous compliance.