In exercise of the powers conferred under sub-section (1) of section 45IB of the Reserve Bank of India Act, 1934 (2 of 1934), and in supersession of the Notification DFC (COC) No. 110. ED(SG)/97 dated June 18, 1997, Reserve Bank of India hereby specifies that, the percentage of unencumbered approved securities to be maintained by a non-banking financial company which is holding `public deposit' as defined in paragraph 2(xi) of the Non-Banking Financial Companies (Reserve Bank) Directions, 1998, shall be -

1. On and from April 1, 1998 twelve and one half per cent of the public deposits; and
2. On and from April 1, 1999 fifteen per cent of public deposits.

(S.P. TALWAR)
DEPUTY GOVERNOR

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