RBI on Tuesday reversed its order of June 4, prohibiting Subrata Roy promoted Sahara India Financial Corporation (SIFC) from accepting fresh deposits. RBI said SIFC can continue to accept deposits for policies maturing by June 30, 2011. After hearing Roy twice following a Supreme Court directive, RBI has allowed SIFC time till June 30, 2015 for repaying all policies as and when they mature.
However, the relief to SIFC comes with riders, with RBI insisting that the company will not treat as defaulter any policy holder who does not pay installments for any daily or recurring deposit scheme after June 30, 2011. Likewise, the SIFC’s total deposits have been capped at Rs 15,000 crore till June 30, 2009; Rs 12,600 crore till June 30, 2010 and Rs 9,000 crore as of June 2011.
SIFC has also been directed to pay interest at the rate it promised to depositors on amounts actually held by it for the entire term of the deposit as if there was no default. In the June 4 order, RBI had charged the company with minimum rate of interest as per RBI directive.