# Definition of Deposit [Section 2(31) & Rule 2(1)(c)]
## Statutory Definition
> Deposit = any receipt of money by a company as deposit, loan or any other form, but EXCLUDES amounts prescribed in consultation with RBI.
The substance of this topic lies in the exclusions — categorising what is NOT a deposit.
## Five Buckets of Exclusions
### Bucket 1 — Special Vehicles
- Money received by Nidhi company
- Money received by Chit Fund
- Collective Investment Scheme
### Bucket 2 — Government & International
- From CG, SG, local authority, or sources guaranteed by them / a statutory authority
- From foreign government, International Bank, Multilateral Financial Institution, Foreign Body Corporate, Foreign Citizen, person resident outside India, Foreign Govt-owned DFI, Foreign Export Credit Agency, Foreign Collaborator (subject to FEMA)
### Bucket 3 — Related to Company
- From a director of a public company (at time of receipt)
- From a director or relative of director in a private company
- Director/relative must furnish declaration that money is not from borrowed funds
- Disclosure in BOD Report & FS required
- From promoters / their relatives as unsecured loan due to stipulation by lending institution — exemption only till lender's loan is repaid
- Non-interest bearing security deposit from an employee, up to his annual salary
- Non-interest bearing amount held in trust by the company
### Bucket 4 — From Other Entities
- Loan / facility from banking company, PFI, insurance company
- Inter-Company Deposit (ICD) from another company
- From AIF, Domestic VCF, InVIT, REIT, Mutual Funds registered with SEBI
### Bucket 5 — From Any Person (Specific Instruments)
- Convertible note received by a start-up (private company) of ₹25 lakh or more in single tranche — convertible within 10 years
- Commercial paper or any RBI-recognised instrument
- Money for subscription of securities — provided that securities are allotted within 60 days; if not, refund within next 15 days; failure converts it into a deposit from 15th day. Adjustment for any other purpose ≠ refund.
- Secured bonds / debentures with first charge (or pari-passu) on tangible assets — amount not exceeding market value of assets
- Compulsorily convertible debentures convertible within 10 years
- Listed unsecured non-convertible debentures (no charge) listed on RSE
### Bucket 6 — Ordinary Course of Business Advances
| Type | Condition |
|---|---|
| (a) Advance for goods/services | Supply within 365 days (no limit if subject to legal proceeding) |
| (b) Advance for immovable property | Adjusted against property |
| (c) Advance under long-term projects | For capital goods (other than (b)) |
| (d) Advance for future services | Period ≤ lower of common practice OR 5 years |
| (e) Advance under sectoral regulator / CG/SG direction | Permitted |
| (f) Advance for subscription to publications | Print / electronic |
| (g) Security deposit | For performance of supply contract |
Trap: If (a), (b) or (c) becomes refundable (e.g., company lacks permission) and is not refunded within 15 days, the amount is deemed deposit from the 15th day.