Neha Redekar
Quick Summary
As per Companies Act, 2013 the term deposit includes any receipt of money by way of deposit or loan or in any other form by a company, but does not include such categories of amount as may be prescribed in consultation with the Reserve Bank of India. EXEMPTED DEPOSITS According to the Rule 2(c
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FAQ :
Under the Companies Act, 2013, a 'deposit' includes any receipt of money by a company by way of deposit or loan or in any other form, excluding specific categories prescribed in consultation with the Reserve Bank of India.
Yes, several types of deposits are exempt. These include amounts received from the Central or State Government, foreign banks or governments, banking companies, public financial institutions, commercial paper, loans from directors or their relatives (under certain conditions), secured bonds/debentures, employee salary, and amounts received in the course of business.
A public company must pass an ordinary resolution in a general meeting, issue a circular to members, file it with the Registrar, maintain a deposit repayment reserve account (20% of maturing deposits), provide deposit insurance, certify no prior defaults, and offer security for repayment.
Yes, private companies can accept deposits from members without adhering to all the public company requirements if the money received does not exceed 100% of their paid-up share capital, free reserves, and securities premium account, or if they meet specific conditions related to their borrowings and status as a start-up.
For contravening Section 73 or 76, a company faces a fine of at least Rs. 1 Crore or twice the deposit amount (whichever is lower), up to Rs. 10 Crore. Officers in default can face imprisonment up to 7 years and fines ranging from Rs. 25 Lacs to Rs. 2 Crores.
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