Can a company accept deposits under section 73?
What section 73 of the Companies Act, 2013 prohibits, the member-deposit route it allows with conditions, the exemptions for banking and non-banking finance companies, how it links to the deposit rules and DPT-3, and how to verify the current position.
In this guide
Section 73 of the Companies Act, 2013 bars a company from inviting or accepting deposits from the public except as the Act allows. Member deposits are permitted after a general-meeting resolution and the section 73(2) conditions, including a circular filed with the Registrar and a deposit repayment reserve. The deposit rules generally limit terms to six to thirty-six months. Banking companies and NBFCs sit outside section 73.
What does section 73 prohibit?
Section 73 of the Companies Act, 2013 prohibits a company from inviting, accepting, or renewing deposits from the public except in the manner the Act allows. The default position is a bar on public deposits. The section then carves out a narrow route: a company can take deposits from its own members if it passes a resolution and meets the conditions.
The prohibition exists to protect the public from unregulated deposit-taking. Public deposits are allowed only for an eligible public company under section 76, which sits alongside section 73 with further thresholds and conditions.
How do member deposits under section 73 work?
Section 73(2) permits a company to accept deposits from its members after passing a resolution in general meeting and satisfying the conditions in the section and the rules. This is the route most private companies use when they take money from members, rather than approaching the public.
The route is conditional, not automatic. The company must follow the procedure in the section and the Companies (Acceptance of Deposits) Rules, 2014, or the deposit is irregular.
What conditions does section 73(2) impose?
A company accepting member deposits under section 73(2) of the Companies Act, 2013 must meet several conditions. The list sets out the main ones.
- Pass a resolution in a general meeting before accepting the deposits.
- Issue a circular to members with the financial information and file it with the Registrar.
- Maintain a deposit repayment reserve for the deposits, as the rules require.
- Provide deposit insurance where the rules require it, and certify no default in repayment.
- Comply with the term limits in the deposit rules, generally six to thirty-six months.
Do private companies get a lighter section 73(2) list?
Some do. Certain private companies have relaxed conditions under the exemptions notified for them, so a private company should check which conditions apply to its class before relying on the full list in section 73(2).
Who sits outside section 73?
Section 73 does not apply to a banking company or a non-banking financial company as defined under the Reserve Bank of India Act, 1934. These entities take deposits under the RBI's framework, so their deposit-taking is governed by RBI regulation rather than by section 73.
This carve-out matters when classifying a receipt. A finance company regulated by the RBI does not test its deposits against section 73, while an ordinary company does.
How does section 73 link to DPT-3?
Form DPT-3 is the return that reports a company's deposits and its receipts that are not treated as deposits. A company can have no public deposits and still need to file DPT-3 for exempted money such as certain loans, so the filing reaches wider than section 73 deposit-taking. The DPT-3 due date guide covers who files and when.
| Item | What it covers |
|---|---|
| Section 73 | The bar on public deposits and the member-deposit route. |
| Deposit rules 2014 | Terms, reserve, insurance, and the six-to-thirty-six-month limit. |
| DPT-3 | Return reporting deposits and non-deposit receipts to the ROC. |
Can we skip DPT-3 if we took no public deposits?
No, not if exempted receipts remain outstanding on 31 March. Form DPT-3 reports deposits and non-deposit receipts. A director loan that sits outside section 73 can still be a DPT-3 line.
How do I confirm section 73 today?
- Open the Companies Act, 2013 and read the prohibition in section 73(1) and the member route in 73(2).
- Check the Companies (Acceptance of Deposits) Rules, 2014 for the term limits, reserve, and insurance conditions.
- Confirm whether the company is exempt as a banking company or an NBFC under the RBI Act.
- For a private company, check the deposit exemptions notified for its class before relying on the full condition list.
- Assess the DPT-3 filing separately, since it can apply even without public deposits.
Why do section 73 deposit filings fail?
- Assuming a company can take public deposits under section 73, when that needs an eligible company under section 76.
- Accepting member deposits without the general-meeting resolution and the circular filed with the ROC.
- Treating a director loan as automatically outside deposits without the written declaration the rules require.
- Missing the six-to-thirty-six-month term limit in the deposit rules.
- Skipping DPT-3 because the company has no public deposits, when it still has reportable non-deposit receipts.
Where are deposit-rule changes published?
Section 73 sits in the Companies Act, 2013, and the deposit rules, DPT-3 form, and private-company exemptions around it move through MCA notifications. Complied AI keeps MCA updates in one feed so you can open the notification behind a rule or form change, then read section 73 next to it when you need the exact wording.
Practical checks
Common questions
Can a company accept deposits from the public under section 73?
No, not as a general rule. Section 73 of the Companies Act, 2013 bars inviting or accepting deposits from the public except in the manner the Act allows. Only an eligible public company under section 76, meeting net worth or turnover thresholds and further conditions, can accept public deposits. Section 73 itself covers the member-deposit route.
What conditions apply to accepting deposits from members?
Section 73(2) of the Companies Act, 2013 requires a resolution in general meeting, a circular to members with the financial information filed with the Registrar, a deposit repayment reserve, and compliance with the Companies (Acceptance of Deposits) Rules, 2014. Those rules generally limit a deposit to a term of six to thirty-six months. Certain private companies have relaxed conditions.
Is a loan from a director a deposit under section 73?
Not if the director gives a written declaration that the money is not from borrowed funds, and the other conditions in the Companies (Acceptance of Deposits) Rules, 2014 are met. Without that declaration, a director loan can fall inside the deposit regime under section 73. The declaration is what keeps the receipt outside deposits.
Do banking and NBFC companies follow section 73?
No. Section 73 of the Companies Act, 2013 does not apply to a banking company or a non-banking financial company as defined under the Reserve Bank of India Act, 1934. These entities accept deposits under the RBI framework instead, so their deposit-taking is governed by RBI regulation rather than section 73.
What deposit term is allowed under the rules?
The Companies (Acceptance of Deposits) Rules, 2014 generally stop a company covered by section 73(2) from accepting or renewing a deposit repayable in less than six months or more than thirty-six months. A limited shorter-term deposit is allowed for short-term fund needs, subject to the cap in those rules.
Is DPT-3 the same as accepting deposits under section 73?
No. Form DPT-3 is a return filed with the Registrar that reports deposits and also money received that is not treated as a deposit. A company can have no public deposits under section 73 and still need to file DPT-3 for exempted receipts such as certain loans. The filing obligation is wider than deposit-taking itself.
We only have a director loan. Do we still file DPT-3?
Usually yes. A director loan that sits outside the section 73 deposit definition is still an exempted receipt that Form DPT-3 reports as outstanding on 31 March under the Companies (Acceptance of Deposits) Rules, 2014. Skipping DPT-3 because there are no public deposits is the usual miss.
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How this guide was prepared
This guide is published by the Complied AI research desk. Its source list and stated position were checked against the official records shown below on 5 September 2026.
Automation, including AI, may assist research, drafting and structure. It does not replace the official record or amount to an independent professional review. Read our editorial standards and corrections policy.
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