THE ALL INDIA SERVICES (CONDUCT) RULES, 1968
ANNEXURE VI
Questions have been raised, from time to time in regard to the treatment to be accorded to fixed deposits with companies and banks. Doubts have been raised particularly on the point whether in regard to such deposits, the provisions of Rule 14(4) of the AIS (Conduct) Rules, 1968, will be attracted. The matter has been examined and the position is clarified as under:
(1) Fixed deposits with public limited companies, whether in the private sector or the public sector, will be covered by the saving clause in Rule 14(4) of the AIS (Conduct) Rules, 1968, as public limited companies receive deposits from the public on authorisation given by the Central Government under the companies (Acceptance of deposits from the public) Rules, 1975. However, where the amount of deposit with a public limited company exceeds the monetary limits laid down in Rule 16(4) of the AIS (conduct) Rules, 1968, then a report to the prescribed authority in regard to the deposit will be necessary under that rule.
(2) Deposits with private limited companies and firms are in the nature of loans to those companies and firms and they should be regulated with reference to the provision or Rule 14(4) of the AIS (Conduct) Rules, 1968.
(3) Fixed deposits with banks are, as already provided in Rule 14(4) of the AIS (Conduct) Rules, 1968, 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 16(4) of the AIS (Conduct) Rules, 1968, if the monetary limits laid down therein are exceeded. The clarification contained in Para 4 of the Department letter No. 5/8/73-AIS III; dated 1-7-74 will stand modified to this extent.
(4) Day-to-day Savings Bank transactions, either with a bank or with a post-office would not, however, come within the purview of Rule 16(4) of the AIS (Conduct) Rules, 1968.
[DP & AR letter No. F. 11017/24/81-AIS (III), dated 22-6-82]