These rules apply to deposits from BOTH members and public.
## Tenure of Deposits [Rule 3(1)(a)]
Limit
Period
Minimum tenure
6 months from the date of acceptance
Maximum tenure
36 months from the date of acceptance
### Short-term Deposit Exception
A company may accept deposits for a tenure less than 6 monthssubject to BOTH of the following:
(a) Minimum tenure of such short deposit = 3 months from date of acceptance.
(b) Maximum aggregate of such short deposits = 10% of (PUSC + Free Reserves + Securities Premium).
## Joint Depositors [Rule 3(2)]
Deposits may be held in joint names, subject to:
A maximum of 3 joint holders.
Clauses such as "Jointly", "Either or Survivor", "First named or Survivor", or "Anyone or Survivor" may be used (with or without these clauses, joint holding is permitted).
Worked example
### Example 1
Example 1 — Short-term deposit cap: ABC Ltd's PUSC + Free Reserves + Securities Premium = ₹200 crore. Maximum total of <6-month deposits ABC may accept = 10% × ₹200 cr = ₹20 crore (each individual short-term deposit being at least 3 months long).
### Example 2
Example 2 — Joint holders: A deposit cannot be accepted in 4 joint names (e.g., parents and two children). The Rules cap joint depositors at 3.
⚠️ Common exam mistakes
Treating 6 months as an absolute floor and forgetting the 3-month sub-floor available within the 10% cap.
Applying the 10% cap to the long-tenure deposits — it applies only to the SHORT-term (<6 months) bucket.
Allowing more than 3 joint depositors.
Bare-Act text Rule 3(1), Rule 3(2) · Companies (Acceptance of Deposits) Rules, 2014 · click to expand
Rule 3(1) — No company referred to in sub-section (2) of section 73 and no eligible company shall accept or renew any deposit, whether secured or unsecured, which is repayable on demand or upon receiving a notice within a period of less than six months or more than thirty-six months from the date of acceptance or renewal of such deposit: Provided that a company may, for the purpose of meeting any of its short-term requirements of funds, accept or renew such deposits for repayment earlier than six months from the date of deposit or renewal, as the case may be, subject to the condition that—(a) such deposits shall not exceed ten per cent of the aggregate of the paid-up share capital, free reserves and securities premium account of the company, and (b) such deposits are repayable not earlier than three months from the date of such deposits or renewal thereof.
Rule 3(2) — Where depositors so desire, deposits may be accepted in joint names not exceeding three, with or without any of the clauses, namely, 'Jointly', 'Either or Survivor', 'First named or Survivor', 'Anyone or Survivor'.