The Ministry has issued three notifications with regard to provisions of the Companies Act, 2013 (Act) /Rules made there under for acceptance of deposits by companies. In view of the suggestions received from the stakeholders to give transitional period for complying with the deposit insurance requirements, the amendment in the relevant rule has been made allowing companies to accept deposits without deposit insurance for one year i.e. till 31.03.2015. Further, with a view to allow relief to companies facing difficulties in repayment of deposits, provisions of section 74(2) & (3) of the Act have been brought into force with effect from 6th June, 2014 and the Company Law Board (CLB) has been allowed to exercise the powers to allow further time to companies for repayment of deposits/interest in certain cases.

These notifications are available on the Ministry’s website at www.mca.gov.in

Deposit insurance transitional relief permits temporary acceptance of deposits; repayment provisions enable extensions for deposit repayment. A transitional waiver allows companies to accept deposits without deposit insurance for a limited period to enable compliance with insurance requirements. Simultaneously, provisions concerning repayment have been brought into force so that the statutory repayment regime can permit extensions; section 74(2) & (3) enable the competent authority to grant additional time to companies struggling to repay deposits or interest.