8. Deposits with the Financial Corporation
8. Deposits with Financial Corporation.—(1) The Financial Corporation may accept from the State Government, or with the prior approval of the Reserve Bank, from a local authority or any other person deposits repayable after the expiry of a period which shall not be less than twelve months from the date of the making of the deposit and on such other terms as the Board thinks fit:
Provided that the total amount of such deposits shall not exceed twice the paid-up share capital of the Financial Corporation:
Provided further that the State Government may permit the Financial Corporation to accept deposits up to a higher limit not exceeding ten times the paid-up share capital of the Financial Corporation.
Any deposit accepted under sub-section (1), other than a deposit from the State Government may, if so required by the Financial Corporation, be guaranteed by the State Government as to the repayment of the principal and payment of interest.
Amendment notes (1)
- Subs w.e.f. 5-9-2000 . Subs. by Act 39 of 2000, s. 7, for sections 5 to 10 (w.e.f. 5-9-2000).