Core concepts
- 01Deposit excludes: share application money, loan from director, banks, govt, related party loan to private cos.
- 02Private company: deposits from members up to 100% of paid-up capital + free reserves + securities premium.
- 03Public company eligible to accept public deposits if net worth ≥ ₹100 cr or turnover ≥ ₹500 cr (Sec 76).
- 04DPT-3 — annual return of deposits filed with ROC by 30th June.
- 05Deposit Repayment Reserve Account: 20% of deposits maturing in next year (Sec 73(2)(c)).
Flowchart summary
Deposits | Eligible Co (Sec 76) --> Public + Members Other Co (Sec 73) --> Members only | Conditions: DPT-3, DRR 20%, Insurance (if applicable), Credit Rating, Trustee (>1 crore)
Exam-critical pointers
- ⭐Deposit Insurance not currently mandatory (suspended notification by MCA).
- ⭐Section 76A — penalty for contravention: ≥₹1 crore or twice the deposit amount + imprisonment.
- ⭐Inter-corporate deposit not a 'deposit' if from holding/subsidiary.
- ⭐Director's loan exempt if accompanied by written declaration about source.
Make it click