A company can accept deposits repayable on demand.

    A company can accept deposits repayable on demand.


    Ans. False:

    Reasons: (1) Deposit is a short to medium term loan taken by company for a certain period. Pre- decided by company and accepted by the depositor.

    (2) It is always a term deposit with a maximum period of 36 months (3 years) and the minimum of 6 months.

    (3) It is repayable after the fixed period.

    (4) Company is not allowed to issue deposit payable on demand.

    (5) So the Public deposits of company are not demand deposits like current or savings bank account.

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