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Deposits are money people leave in an institution with the understanding that they can get it back at any time or at an agreed-upon future time. A loan is money let out to a borrower to be generally paid back with interest. This action of taking deposits and making loans is called financial intermediation.

Acceptance of deposits under Companies Act, 2013 – Provisions Terms and Conditions of Acceptance of Deposits by Companies (Rule -3)Private CompanyFrom Members (Sec 73)35% of (PUC+FR+SP) *100% of (PUC+FR+SP) if its satisfies condition 1 *No limit if it satisfies Condition 2Any other (Sec 76)Not allowed 10-Mar-2022

(3) No company referred to in sub-section (2) of section 73 shall accept or renew any deposit from its members, if the amount of such deposits together with the amount of other deposits outstanding as on the date of acceptance or renewal of such deposits exceeds twenty five per cent.

As per the Companies Act, 2013, a deposit is any money that is received, either by means of a deposit or a loan or any other form as may be prescribed, but does not include certain classes of transactions.

Such deposit, shall not exceed 10% of the aggregate of [Paid-up share capital, free Reserves and securities premium account] of the company, Such deposits are not repayable earlier than 3 months from the date of acceptance or renewal.

Furnishing of deposit receipts to depositors.- (1) Every company shall, on the acceptance or renewal of a deposit, furnish to the depositor or his agent a receipt for the amount received by the company, within a period of twenty one days from the date of receipt of money or realisation of cheque or date of renewal.

As per section 2(31) and rule 'deposit' includes any receipt of money by way of deposit or loan or in any other form by a company, but following loan does not include in deposit as mentioned by the Reserve Bank of India: -any amount received from central or state government directly or indirectly.

Deposits can be accepted by the company from public, directors or its members. It is a loan taken by the company and there are various terms and conditions that a company need to follow to accept them.