Long term public deposits are those which a company can accept them to meet long term financial needs. The procedure to get these deposits is simple and does not involve many formalities. A company can accept these deposits for a ** not exceeding 5 years (60 months). The maximum amount raised under public *** shall not exceed 25% of the paid up capital of the company.
The advantage of long term deposits to the public is that they are unsecured and 8% to 10% of interest is allowed. The public can use their money in long term deposits and earn 8% to 10% interest.
