Urging the government to allow private companies to accept deposits from the public without a deposit insurance contract for one more year, India Inc said that the provisions introduced in the companies have thrown many challenges to the companies.
According to new norms, the government has made deposit insurance mandatory for private companies raising money through deposit-taking schemes from next month. Companies will have to bear the expenses of deposit insurance themselves. The purpose is to protect consumers from possible defaults.
Approaching the Ministry of Corporate Affairs (MCA), different industry chambers and stakeholders have raised the issue.