# Introduction to Acceptance of Deposits
## What is a Deposit?
A Deposit (also called Public Deposit or Fixed Deposit) is a form of borrowing made by companies. Think of it as a company taking money from the public/members with a promise to repay later.
### Key Features
- May be secured or unsecured borrowings
- Repayment is time-bound (must be repaid by a fixed date)
- Governed by Sections 73 and 76 of the Companies Act, 2013
- Detailed rules are given in the Companies (Acceptance of Deposits) Rules, 2014
## Purpose of the Provisions
These provisions regulate:
- The limits up to which deposits can be accepted
- The manner in which they can be accepted
- The conditions subject to which deposits can be invited/accepted
## Who is Covered?
Sections 73 and 76 apply to Non-Banking Non-Financial Companies such as:
- Trading companies
- Manufacturing companies
- Other ordinary commercial companies
## Who is NOT Covered (Exempted)?
Sections 73 and 76 do NOT apply to:
1. Banking Companies
2. Non-Banking Financial Companies (NBFCs)
3. Housing Finance Companies
4. Other classes notified by the Central Government
> Why excluded? Because these entities are regulated by separate, specialised legal frameworks (RBI, NHB, etc.) that already govern their deposit-taking activities.
## Quick Distinction: Private vs Public Company
| Company Type | Can Accept Deposits From |
|---|---|
| Private Company | Members only |
| Public Company | Members + Public (if certain parameters fulfilled) |