Comment on the following: A private company and a banking company, can freely accept deposits.

As per Rule 1(3) of the Companies (Acceptance of Deposits) Rule, 2014 , made under Section 73 and 76 of the Companies Act, 2013, the Companies (Acceptance of Deposits) Rule, 2014, shall apply to a company other than: a banking company; a non-banking financial company as defined in the Reserve Bank of India Act, 1934, registered with the Reserve Bank of India; a housing finance company registered with the National Housing Bank established under the National Housing Bank Act, 1987; and a company specified by the Central Government under the proviso to sub-section (1) of section 73 of the Act. Accordingly, the Companies (Acceptance of Deposits) Rules, 2014, are not applicable to a banking company. Hence, a banking company can freely accept deposits. A private company is allowed to accept deposits from its members subject to fulfillment of conditions provided under section 73(2)(a) to (e) of the Companies Act, 2013 . However, the Ministry of Corporate Affairs vide notification dated 13th June 2017 provides that section 73(2)(a) to (e) shall not apply to the following classes of private companies: which accepts from its members monies not exceeding one hundred per cent of the aggregate of the paid-up share capital, free reserves, and securities premium account; or which is a start-up, for five years from the date of its incorporation; or which fulfills all of the following conditions, namely: which is not an associate or a subsidiary company of any other company; if the borrowings of such a company from banks or financial institutions or anybody corporate is less than twice of its paid-up share capital or fifty crore rupees, whichever is lower; and such a company has not defaulted in the repayment of such borrowings subsisting at the time of accepting deposits under this section. The company referred to in clauses (A), (B) or (C) shall file the details of monies accepted to the Registrar in Form DPT-3.