# Definition of 'Depositor' [Rule 2(1)(d)]

## Statutory Definition

> 'Depositor' means:

> 1. Any member of the company who has made a deposit with the company in accordance with Section 73 of the Companies Act; OR

> 2. Any person who has made a deposit with an eligible company in accordance with Section 76 of the Companies Act.

## Two Categories of Depositors

Category	Who	Which Company	Governing Section
1st Category	Member of the company	Any company (private/public) accepting from members	Section 73
2nd Category	Any person (member or non-member/public)	Eligible Company only	Section 76

## Key Observations

### 1. 'Depositor' is a Defined Term

Only someone who fits one of these two limbs is legally a depositor. A person lending money to a company outside these provisions is not a 'depositor' for the purposes of the Companies Act.

### 2. Membership Requirement Under Section 73

Under Section 73, only members can be depositors. This restricts ordinary companies to a closed group.

### 3. 'Any Person' Under Section 76

Section 76 allows acceptance of deposits from the public (not just members) — but ONLY by an 'Eligible Company' (a defined term — typically large public companies meeting prescribed thresholds).

## Why Two Routes?

Section 73 route: Available to most companies but limited to a trusted member-base — lower regulatory burden.
Section 76 route: Available only to eligible (large, well-capitalised) public companies — they can tap the public, with stricter compliance and credit rating requirements.

## Linkage with Other Provisions

The term 'depositor' is used throughout the deposit regime — particularly for:

Repayment obligations
Maintenance of deposit repayment reserve
Filing of returns
Protection mechanisms (deposit insurance, trustees, etc.)

Worked example

### Example 1

Example: Mr. R, a member of M/s Sunshine Ltd. (a public company that is NOT an eligible company), makes a deposit with the company. Is he a 'depositor'?

Answer: YES. Under Rule 2(1)(d), a member who makes a deposit with the company in accordance with Section 73 is a depositor.

### Example 2

Example: Mr. S, who is NOT a member of M/s Moonlight Ltd. (an eligible public company), deposits ₹2 lakh with the company under the public deposit scheme. Is he a depositor?

Answer: YES. Under the second limb of Rule 2(1)(d), any person (including non-members) who makes a deposit with an eligible company under Section 76 is a depositor.

### Example 3

Example: Mr. T, a non-member, deposits ₹1 lakh with M/s Sunshine Ltd. (a public company that is NOT an eligible company). Is he a depositor under the Act?

Answer: NO. Sunshine Ltd. is not an eligible company under Section 76, and Section 73 limits depositors to members only. Hence, Mr. T is not a 'depositor' as defined. In fact, Sunshine Ltd. cannot legally accept his deposit at all.

⚠️ Common exam mistakes

Believing that any lender to a company is a 'depositor' — only those who deposit under Sections 73 or 76 qualify.
Assuming that public deposits can be accepted by any public company — only eligible companies can accept from non-members under Section 76.
Conflating 'member' and 'shareholder' — generally synonymous but always check the company's register of members.
Forgetting that under Section 73, even public companies are restricted to accepting deposits from members only (unless they qualify as eligible companies under Section 76).

Bare-Act text Rule 2(1)(d) read with Sections 73 & 76 · Companies (Acceptance of Deposits) Rules, 2014 · click to expand

Rule 2(1)(d): 'Depositor' means — (i) any member of the company who has made a deposit with the company in accordance with the provisions of sub-section (2) of section 73 of the Act; or (ii) any person who has made a deposit with a public company in accordance with the provisions of section 76 of the Act.

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Definition of 'Depositor' under Rule 2(1)(d)

Worked example

⚠️ Common exam mistakes