B. Approval from Shareholders 

A company can accept deposits only after obtaining approval from its shareholders by passing a resolution at a general meeting. The resolution must specify the maximum amount of deposits that the company can accept, the duration for which the deposits can be accepted, and the interest rate payable on the deposits.

C. **Creation of a Deposit Repayment Reserve

A company accepting deposits must create a deposit repayment reserve account and transfer at least 20% of the amount of deposits maturing during the financial year to this account. The deposit repayment reserve must be created on or before 30th day of April each year. 

 D. **Disclosure of Particulars in Circular for acceptance of Deposits (DPT- 3)

Companies accepting deposits must disclose the particulars of the deposit scheme in the prospectus or the circular or the form in which the offer of the deposit is made. The particulars must include the terms and conditions of the deposit scheme, statement showing the financial position of the company, the credit rating obtained, the total number of depositors and the amount due towards deposits in respect of any previous deposits accepted by the company the interest rate payable, the duration of the deposit, the security offered, and any other relevant information. 

E. Maintenance of Records

Companies accepting deposits must maintain a register of deposits in Form DPT-2, which needs to be updated on a regular basis. This register contains details of the deposits accepted by the company, including the amount, date of acceptance, maturity date, rate of interest, and details of security provided, if any. The register must be maintained for a period of at least eight years from the date of the last entry. 

F. Offer of Security for due Repayment of Deposits

Companies accepting deposits must offer adequate security for the due repayment of deposits. The security can be in the form of a charge on the company’s assets or any other security approved by the Reserve Bank of India.

G. Repayment of deposit with interest

Every deposit accepted by a company shall be repaid with interest in accordance with the terms and conditions of the agreement. 

If a company fails to repay a deposit, any interest due, or a part of it, the depositor can approach the Tribunal to seek an order directing the company to pay the amount due or for any loss or damage suffered by the depositor due to the non-payment. The Tribunal can also issue any other orders it considers appropriate in this matter. 

**Note – Clauses C and D as mentioned above are not applicable to Private Limited Companies. 

*  Filing of return for acceptance of deposits 

 The Act mandates that companies that have accepted deposits to file return of the deposits in Form DPT-3 annually on or before 30th of June each year for the preceding financial year.  

* The form shall be filed even in case of acceptance of exempt deposits.  

Consequences of Non-compliance  

The Act prescribes strict penalties for companies that violate the provisions governing deposits. Non-compliance can result in fines, imprisonment, and other sanctions. The punishment for non-compliance with deposit provisions is as follows: 

Fine: The Company shall in addition to payment of the amount of deposits,  is liable to pay a fine of not less than Rs. 1 Crore or twice the amount of the deposit received, whichever is lower which may extend to Rs. 10 Crores.. 

Imprisonment: In addition to a fine, the officers responsible for non-compliance shall be punishable with imprisonment for a term of up to seven years and fine 

Repayment: Companies that violate the deposit provisions of the Companies Act, 2013 must repay the deposits within one year from the date of the order.