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Microlesson · 5-min read

Applicability of Chapter V [Section 73(1)]

# Applicability of Deposit Provisions [Section 73(1)]

## Whom Does Chapter V Apply To?

Chapter V (Sections 73–76A) regulates acceptance of deposits only by Non-Banking Non-Financial Companies — e.g.:

  • Manufacturing companies
  • Trading companies
  • Other commercial companies

## Whom Does It NOT Apply To?

The Chapter does not apply to:

1. Banking Companies (regulated by Banking Regulation Act)

2. Non-Banking Financial Companies (NBFCs) (regulated by RBI)

3. Housing Finance Companies (HFCs) (regulated by NHB/RBI)

4. Other companies as notified by Central Government

## Why This Carve-out?

These excluded categories are already regulated under specialised statutes / regulators. Subjecting them to Chapter V would create overlapping regulation.

Worked example

### Example 1

Example: XYZ Ltd. is a manufacturing company; Section 73 applies. ABC Bank Ltd. is a banking company governed by Banking Regulation Act — Chapter V does not apply to it.

⚠️ Common exam mistakes

  • Applying Section 73 deposit caps to NBFCs / banks.
  • Forgetting CG's residual power to notify exclusions.
Bare-Act text Section 73(1) · Companies Act, 2013 · click to expand
The deposit provisions of Chapter V regulate acceptance of deposits by Non-Banking Non-Financial Companies. They are NOT applicable to a Banking Company, NBFC, Housing Finance Company, and other companies notified by Central Government.
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