Q.Write short notes on the following:
Renewal of deposits

Renewal of deposit is the continuation of a maturing deposit for a further period at the depositor's request, with a fresh receipt and applicable interest.

When a company deposit reaches the end of its agreed period (maturity), the depositor has two choices: to take back the money, or to keep it with the company for a further period. If the depositor chooses to continue the deposit, this is called renewal of deposit.

The main features and procedure are:

• Request by depositor: The depositor applies for renewal, usually before or around the maturity date, stating the new period for which he wants to continue.
• Compliance with rules: The renewal must follow the limits and conditions laid down under the Companies Act, 2013 and the Deposit Rules, including the minimum six months and maximum thirty-six months period.
• Fresh deposit receipt: The secretary cancels or endorses the old receipt and issues a fresh deposit receipt for the renewed period, showing the new maturity date. …