Amendment status not verified — confirm the current text below against the official source.
(1) A Financial Establishment which fails to make repayment 0\ maturity amount to a depositor on the date on which it b8{;omes' payable, shall, in addition to any civil or criminal action which the· depositor or Competent Authority may initiate against the Financial Establishment,_ also be liable to pay the depositor interest on the maturity amount due to the depositor, from the third day following the date on which the maturity amount became payable till the date of actual payment, at 2 (two) percent more than the rate of interest at which such deposit was received from the depositor. (2) A depositor who does not receive the maturity amount due may prefer a complaint to this effect to the Competent Authority on expiry of 15 (fifteen) days from the date on which such amount became payable. (3) Onreceipt of a complaint under sub-section (2), the Competent Authority shall, within 7 (seven) days there-from, direct the defaulting Financial Establishment to make payment due to the depositor together with the interest mentioned at sub-section (1) within 10 (ten) days after issue of such direction. (4) A Financial Establishment which fails to comply with the direction issued under sub-section (3) will be liable to be debarred by the Competent Authority without issuing a notice to show cause, from accepting any deposit until the full amount due is paid to the complainant. (5) If a Financial Establishment defaults on repayment of the maturity amount along with interest prescribed under sub-section (1) of section 16 to the depositor for 30 (thirty) days after issue of a direction under sub-section (3), the Competent Authority shall, without issue of a notice to the Financial Establishment to show cause, take action to pay the amount due to the complainant depositor from the securities furnished by the defaulting Financial Establishment under sub-section (1) of Section 7. (5) A Financial Establishment shall be permitted to resume acceptance of deposits unless the security utilized for repayment of dues to the depositor under sub-section (5) is replenished by it. CHAPTER IV