State the maximum amount of deposits it can accept from persons other than members.

CA Intermediate · Corporate and Other Laws · MTP · January 2026
State the maximum amount of deposits it can accept from persons other than members.

Suggested Answer and Working Notes:

Maximum Amount of Deposits: As per Rule 3 (4) (b) of the Companies (Acceptance of Deposits) Rules, 2014, an eligible company is permitted to accept or renew deposits from persons other than its members. As per the law the amount of such deposit together with the amount of outstanding deposits (excluding deposits from members) on the date of acceptance or renewal can be maximum twenty-five per cent. of the aggregate of its paid-up share capital, free reserves and securities premium account of the company.

Topics: Acceptance of Deposits by Companies

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic