Renewal of Deposit

Why the Company Writes Before Maturity

As a deposit's maturity date approaches, it is in both the company's and the depositor's interest for the Secretary to write well in advance — rather than wait for the depositor to ask what happens next. Writing early gives the depositor genuine time to decide, and it gives the company genuine time to plan for repayment if the depositor chooses not to renew, since repayment must be arranged out of the Deposit Repayment Reserve Account Chapter 5 described, not out of whatever cash happens to be on hand on the day the deposit falls due.

What the Renewal Letter Offers

The Secretary's letter, sent ahead of maturity, informs the depositor of the exact maturity date and amount due, and offers the depositor a genuine choice: renew the deposit for a further period (commonly at the rate of interest then being offered on fresh deposits of a similar tenure, which may differ from the original rate), or receive repayment in full on the maturity date. The letter should ask the depositor to convey their decision, in writing, well before the maturity date, and to return the original Deposit Receipt, duly discharged (signed on the reverse acknowledging renewal or repayment), so that a fresh receipt can be issued if renewal is chosen. A depositor who does not respond at all is not automatically treated as having renewed — the deposit falls due for repayment on the stated date regardless, and if a depositor genuinely cannot be reached, the amount is held for the depositor's payment rather than the company treating it as though it had lapsed.

Specimen Letter — Inviting Renewal of a Maturing Deposit

KONKAN AGRO INDUSTRIES LIMITED

Registered Office: Plot No. 14, MIDC Industrial Area, Ratnagiri – 415612

CIN: U01100MH2015PLC123456

Date: 1st February

To,

Mr. Suhas Rane,

14, Ganesh Nagar,

Ratnagiri – 415639

Dear Sir,

Sub: Maturity of your Fixed Deposit Receipt No. FD/2026/0142 on 4th April

We wish to inform you that your Fixed Deposit Receipt No. FD/2026/0142 for Rs. 1,00,000, bearing interest at 9% per annum, will mature for repayment on 4th April. The amount payable to you on that date, including interest accrued and not already paid, will be Rs. 1,00,000 together with interest for the period since your last interest payment.

We would be happy to have your continued confidence in the Company. If you wish to renew this deposit for a further period, we currently offer 9.25% per annum for a 24-month renewal — kindly let us know your decision in writing, and return the enclosed Deposit Receipt duly discharged on the reverse, at least a fortnight before the maturity date, so that a fresh receipt for the renewed period can be issued to you without any break.

Alternatively, if you wish to receive repayment in full on maturity, kindly return the Deposit Receipt duly discharged on or before 4th April, and confirm the bank account to which the repayment cheque should be sent.

We look forward to your instructions.

Yours faithfully,

For Konkan Agro Industries Limited

(Anjali Deshpande)

Company Secretary

Encl: Deposit Receipt No. FD/2026/0142 (for discharge) …