Section 8(1) in The State Financial Corporations Act, 1951
(1)The Financial Corporation may accept from the State Government, or with the prior approval of the Reserve Bank, from a local authority or any other person deposits repayable after the expiry of a period which shall not be less than twelve months from the date of the making of the deposit and on such other terms as the Board thinks fit:Provided that the total amount of such deposits shall not exceed twice the paid-up share capital of the Financial Corporation:Provided further that the State Government may permit the Financial Corporation to accept deposits up to a higher limit not exceeding ten times the paid-up share capital of the Financial Corporation.
