In this Article author analyses provisions of Deposit and applicability of provisions of Deposit Rules including Companies (Acceptance of Deposits) Amendment Rules, 2019 and Sections  on NBFC Companies.

Whether as per Latest Deposit Rules NBFC or Banking Companies are also required to file e-form DPT-3 with ROC?

Legislative Language:

As per Section 73(1) States “On and after the commencement of this Act, no company shall invite, accept or renew deposits under this Act from the public except in a manner provided under this Chapter”

Provided that nothing in this sub-section shall apply to a banking company and non-banking financial company as defined in the Reserve Bank of India Act, 1934 (2 of 1934).

Part -1: For acceptance of Deposit Companies are required to follow Section 73 as mentioned in Section 73(1).

Part -2: Proviso of Section 73(1) states that Section 73(1) doesn’t apply on NBFC.

Therefore, one can opine that for acceptance or renew of Deposits under Companies Act from the Public in NBFC are not required to follow Section 73.

Legislative Language:

As per Rule 1(3) (3) These rules shall apply to a company other than –

(i) a banking company;

(ii) a non-banking financial company as defined in the Reserve Bank of India Act, 1934 (2 of 1934) registered with the Reserve Bank of India; 

(iii) a housing finance company registered with the National Housing Bank established under the National Housing Bank Act, 1987 (53 of 1987)

Therefore, Rules of Deposits are not applicable on NBFC Companies.

Therefore, one can say that requirement of filing of DPT-3 states under Rule 16. However, Rules are not applicable on NBFC Companies.

It is crystal clear that NBFC Companies are not required to file e-form DPT-3 with ROC as per latest Deposit rules.

Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at csdiveshgoyal@gmail.com).

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One Comment

  1. NIKHIL AGARWAL says:

    Sir, if a private limited took a Bank overdraft then it is exempt deposit or deposit???

    and do NBFC required to file one time DPT3?

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