DEPOSIT RULES FOR PRIVATE COMPANIES

1. As per Chapter V, Rule 2(1) (c) (VII), any amount received by a Company from a
person who, at the time of the receipt of the amount, was not a Director of the
Company but was a member of the Company will not be considered as deposit.
Because Private Companies are allowed to accept Deposits from the members upto
100% of Paid up Share Capital and Free Reserves.

2. As per Companies (Acceptance of Deposits) Amendment Rules, 2019, “Every

company to which deposit rules apply (means loan considered as deposit), shall on
or before the 30th day of June, of every year, file with the Registrar, a return
in Form DPT-3 mentioning the details of deposit.

3. Procedures to be followed for taking Loan from Members (Company):

As per Chapter V, Rule 2(1) (c) (VI), any amount received by a Company from any
other company is excluded from the definition of deposits. Therefore, loans taken by
a Company from any other Company, even if such other Company is its member, will
not be treated as deposits. Hence the provisions and procedures required to be
followed for accepting deposits in Chapter V under the Companies Act, 2013 will not
be applicable in such cases.

4. It may be noted that Sections 73 and 76 and Companies (Acceptance of Deposits)

Rules, 2014 do not apply to acceptance of deposits by Banking Companies, NBFCs,
Housing Finance Companies and such other class of notified companies.