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Section 8: Interest and dividends on deposits

Insurance Rules, 1939Central Rules · 1938

(1) No interest shall bepaid on cash deposits.

(2) Interest or dividends on sterling securities shall, at theoption of the depositor, be either paid in London by the Londonoffice of the Bank after deduction of a commission of 5s. on everysum of £100 or part thereof, or remitted by the London officeof the Bank to the appropriate Indian office of the Bank at thetelegraphic transfer rate on India prevailing on the date ofrealisation of the interest or dividends.

(3) The appropriate Indian office of the Bank shall remit interestor dividends on securities other than sterling securities, andamounts if any, received from the London office of the Bank undersub-rule (2) without delay to the depositor at an office in India tobe specified by the depositor,-

(a) if the office so specified is at a place where there is anoffice of a Bank or a branch of the Imperial Bank of India, by meansof a Government draft;

and

(b) in other cases, by a Security Deposit Interest Payment Drafton the nearest Government Treasury;

after deduction of a commission of annas four on every sum of Rs.100 or part thereof.

Where this provision sits

ActInsurance Rules, 1939
Section8
Marginal noteInterest and dividends on deposits
JurisdictionCentral
StatusIn force as published by the source

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