There is an enabling provision in Section 73 (2) (d) of the Companies Act whereby Companies permitted to accept deposits from the public will be required to “provide such deposit insurance in such manner and to such extent as may be prescribed”. Giving this information in written reply to a question in the Rajya Sabha, Shri Sachin Pilot, Minister for Corporate Affairs, said that the operationalization of this provision would require framing of suitable rules in consultation with the Reserve Bank of India.

Deposit insurance requirement for public company deposits pending framing of operational rules in consultation with the central bank. Section 73(2)(d) of the Companies Act requires companies allowed to accept public deposits to provide deposit insurance in a prescribed manner and extent; operationalisation depends on framing rules developed in consultation with the central banking authority to specify manner, extent and procedural modalities.