Fixed Deposits with Banks and Companies

(27) CCS (Conduct) Rules, 1964 – Fixed Deposits with Banks and Companies – Clarification regarding.

Fixed Deposits with public limited companies, whether in the private sector or the public sector, will be covered by the saving clause in the Rule 16 (4) of the CCS (Conduct) Rule, 1964 as public limited companies receive deposits from the public on authorization given by the Government under the Companies (Acceptance of deposit from the public) Rules, 1975. However, where the amount of deposit with a public limited company exceeds the monetary limits laid down in Rule 18 (3) of the CCS (Conduct) Rules, 1964, then a report to prescribed authority in regard to the deposit will be necessary under that rule.

Fixed Deposits with Banks are, as already provided in Rule 16 (4) of the CCS (Conduct) Rules, 1964, exempt from the operation of this rule. However, in regard to Fixed Deposits with Banks also, a report should be made to the prescribed authority under Rule 18 (3) of the CCS (Conduct) Rules, 1964, if the monetary limit laid down therein are exceeded. The clarification contained in para 4 of this Department Office Memorandum No. 11013/7/76-Ests.(A) dated 04.10.1976 will stand modified to this extent.

Day-to-Day Savings Bank transactions, either with a Bank or with a post-office would not, however come within the purview of Rule 18 (3) of the CCS (Conduct) Rules, 1964 as already provided in para 4 of this Department office Memorandum No. 11013/12/76-Ests.(A) dated the 4th October, 1976.

[Deptt. of Personnel & AR’s OM No. 11013/5/81-Ests.(A), dated 12.05.1982]