What is Acceptance of deposits in Companies Rules 2014?

Companies Rule 2014 or the Acceptance of deposits rule 2014 came into force on April 1st 2014. This rule is applicable for company as well as a banking company, NBFC registration firm, a housing finance company and a company specified by the central Government under the subsection (1) of section 73 of the corresponding Act. According to this company the deposits includes receipts of money way of loans, deposits or in any other format. But it does not includes, the amount received from the central and state government or any other resources whose payment is in under control of state and central government. Likewise, the deposit by the company registration firm does not include any amount received from the statutory authority constituted under the Act of Parliament or the state legislature.

Companies Rule 2014

Companies Rule 2014 Acceptance of deposits | Corpstore

Similarly, the amount received from foreign Governments, foreign or international banks, financial institutions, company registration firms which are owned by foreign governments, foreign export credit agencies, foreign collaborators, foreign citizens and the foreign people who are resident outside India etc. should subject to the rules of Foreign exchange Management Act, 1999.

Any amount received as a loan or facility from any of the banking company o from state bank of India or any of its sub equivalent banks from its banking institutions notified by the Central Government under section 51 of the Banking regulations Act 1949 or the new clause of section 2 of the banking companies Act, 1970. The amount received towards the commercial paper or any other instrument issued in regarding with guidelines published by the Reserve Bank of India.

Depositor Rules

Companies Rule 2014 Acceptance of deposits | Corpstore

The amount accepted by a Nidhi company regarding the rules made under section 406 of the Act. In accordance with this clause, the amount received by the company from a person by making some offers like give returns in cash or offer, or earlier or any other manner whatsoever or any additional documents over the amount made by the company as part of such promise or offer.

                In case of a depositor, the depositor means any person in the company who has made certain deposits in company regarding the provision of sub-section 2 of the section 73 of the Act. Or any person who has made deposits with a public limited company in accordance with the provision of section 76 of the Act.

Fees requirements according to Companies Rules, 2014

Fees of the companies’ means fees as specified in the Companies Rules, 2014.

Form or e-form in the sense a form set forth in Annexure to these rules which may be used for the matter to which it relates at the time of company registration.

Section in the sense sections of the Act.

Trustee in the sense the trustee defined in the section 3 of the Indian Trusts Act, 1882.

The words and expressions used in these rules and those wordings are not defined in the Act or in the Reserve Bank of India Act, 1934 or in the companies Rules, 2014may have the meaning respectively assigned to them in the said Act or in the described said rule.  These are the fees requirements mentioned in the Company Registration Rules, 2014.

Terms and conditions of acceptance of deposits by companies

Companies Rule 2014 Acceptance of deposits | Corpstore
Business people holding money illustration

No company referred in sub-section 2 of section 73 are not eligible to accept or deposits any amounts whether it is secured or unsecured. Such companies may receive a notice of repayment within a period of less than six months or more than 30 months from the date of acceptance or renewal of such company.

If a company accept any of the funds to meet its short term requirements earlier than six months from the date of deposits or renewal, such company may subject to the conditions like,

Such deposits should not exceeds 10% of the aggregate of the paid up share capital and free reserve of the company.

Such deposits should repay before 3 months from the date of deposits or renewal.

Form and particulars of advertisements or circulars

Depositor’s deposits are accepted in joint names not exceeding three with or without any of the clauses.

Each and every company registered in sub section 2 of section 73 inviting every members by issuing a circular by registered post by an electronic mode in form DPT-1.

 Every company invites people from public should upload a copy of the circulars on its websites if there is any.

Every eligible company registration looks forward to invite deposits shall issue circulars in the form DPT-1 for the purpose in English language.

No company may allow deposits and issue deposits on behalf of the company, in any circular in the form of advertisement inviting deposits unless those form of advertisements are issued on the authority and in the name of the Board of directors of the company.

Form of advertisement

No company referred in subsection 2 of section 73 shall accept or renew the deposits from its members. If the deposits amount add together with the amount of other existing deposits then such deposits exceeds 25% of the aggregate of the paid up share capital and free reserves of the company.

No circular or any particular circular in the form of advertisement may issue by the company or behalf of the company unless not less than thirty days before the date of issue. The circulars are delivered to the Registrar for registration and then it signed by majority of the directors of the company at the time the board approved the circulars in the form of advertisement.


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