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Question 27 of 28

Q.State any four terms and conditions regarding acceptance of deposit.

Maharashtra MsbshseMaharashtra HSC (MSBSHSE) Board 2026Subjective· 4mImportance★★★★★
96% · 27/28 Questions
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Deposits must be accepted only within the legal framework of the Companies Act, 2013 — with a fixed term, proper resolution and circular, a repayment reserve, and prescribed limits and safeguards.

Under the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, a company can accept deposits only on certain terms and conditions meant to protect depositors. Any four of the following are acceptable as an answer.

  1. Tenure of deposit — A deposit must be accepted for a minimum period of six months and a maximum period of thirty-six months. Short-term deposits below six months are not allowed except a small portion for meeting short-term needs.
  2. Passing of resolution and circular — The company must pass the necessary resolution in a general meeting and issue a circular or advertisement to members (and to the public in the case of an eligible company) giving prescribed financial details.
  3. Deposit Repayment Reserve Account — The company must, on or before 30th April each year, deposit at least twenty percent of the deposits maturing during the following financial year in a separate deposit repayment reserve account with a scheduled bank.
  4. Deposit insurance and security — The company must provide for deposit insurance and, in the case of secured deposits, create a charge on its assets and appoint a deposit trustee to protect depositors' interests. …

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