Rules 11 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Once deposits are accepted, four housekeeping rules apply. A depositor may nominate someone to receive the money on death, the company must give a receipt, the company must park a sum with a scheduled bank every year by 30 April, and a register of deposits has to be kept. This article states rules 11 to 14 as amended up to G.S.R. 663(E) dated 29 August 2022 per the MCA e-book; later amendments should be checked.
A depositor may nominate a person; section 72 applies as far as may be. The company gives a receipt within twenty one days of receipt of money, realisation of the cheque or renewal. By 30 April each year the company deposits the sum specified in section 73(2)(c) with a scheduled bank, and the amount remaining must never fall below twenty per cent of deposits maturing during the financial year. The register of deposits is kept at the registered office, written up within seven days of the receipt and preserved for at least eight years.
Rule 11: nomination
Every depositor may, at any time, nominate any person to whom his deposits shall vest in the event of his death, and the provisions of section 72 apply, as far as may be, to a nomination made under this rule. The rule prescribes no form of its own; it borrows the machinery of section 72. For the parallel rule on shares and debentures, which prescribes Forms SH-13 and SH-14, see our article on rule 19 of the Share Capital Rules; do not assume those forms apply to deposits, since rule 11 does not name them. Our section 72 post covers the Act.
Rule 12: the deposit receipt
| Sub-rule | Requirement |
|---|---|
| (1) | On acceptance or renewal of a deposit, every company furnishes the depositor or his agent a receipt for the amount, within twenty one days from the date of receipt of money, realisation of the cheque or the date of renewal. |
| (2) | The receipt is signed by an officer duly authorised by the Board, and states the date of deposit, the name and address of the depositor, the amount received as deposit, the rate of interest payable and the date on which the deposit is repayable. |
The twenty-one days run from whichever date the rule names for the way the money came in: receipt of money, realisation of a cheque, or renewal. Keep the bank credit date on the file, since a cheque deposit starts the period on realisation.
Rule 13: the deposit repayment reserve
Every company under section 73(2) and every eligible company shall, on or before the 30th day of April of each year, deposit the sum specified in clause (c) of section 73(2) with any scheduled bank. The amount so deposited cannot be used for any purpose other than repayment of deposits. The rule itself does not print the sum; it points to section 73(2)(c), so read the Act for the percentage. Our section 73 post covers the Act.
A proviso, substituted with effect from 15 August 2018, says the amount remaining deposited shall not at any time fall below twenty per cent of the amount of deposits maturing during the financial year. The e-book's note records the earlier proviso as fifteen per cent with a different period; that is the old wording, not the present rule. A company with deposits maturing in a given year should compare the balance with the twenty per cent floor throughout the year, not only on 30 April. If you want the schedule of maturities checked against the reserve, our compliance documentation service can prepare the working papers.
Rule 14: the register of deposits
Sub-rule (1). Every company accepting deposits maintains at its registered office one or more separate registers for deposits accepted or renewed, with these particulars entered separately for each depositor:
- name, address and PAN of the depositor or depositors;
- particulars of the guardian, if the depositor is a minor;
- particulars of the nominee;
- the deposit receipt number;
- the date and amount of each deposit;
- the duration and the date on which each deposit is repayable;
- the rate of interest payable;
- the due date for payment of interest;
- the mandate and instructions for payment of interest and for non-deduction of tax at source, if any;
- the date or dates on which interest is paid;
- particulars of security or charge created for repayment of deposits; and
- any other relevant particulars.
The lettering in the rule runs (a) to (m), with clause (k) omitted. It formerly required details of deposit insurance and was omitted from 15 August 2018, in step with the omission of rule 5. The numbering above is a list of the remaining items, not the rule's own letters.
Sub-rule (2). The entries are made within seven days from the date of issuance of the receipt, duly authenticated by a director or secretary of the company or by any other officer authorised by the Board.
Sub-rule (3). The register is preserved in good order for not less than eight years from the financial year in which the latest entry is made in it.
Sub-rule (1) refers to "tax at source" and PAN. The rule says nothing more on tax; for the tax treatment of interest, see our income-tax guides.
Example
Heritage Auto Limited, an eligible company, accepts a deposit by cheque on 5 June. The cheque is realised on 8 June. The receipt, signed by an officer authorised by the Board, is due within twenty one days from 8 June (the date of realisation), stating the deposit date, depositor's name and address, amount, rate of interest and repayment date. The register entry, authenticated by the company secretary, is made within seven days of the receipt being issued. Before 30 April of each year the company deposits the sum required by section 73(2)(c) in a scheduled bank, keeps the balance at not less than twenty per cent of the deposits maturing in the financial year, and uses it only to repay deposits.
Need help with the deposit register and reserve?
The receipt, the register and the reserve are the first things checked when deposits are reviewed. We help companies set up and reconcile them; see our compliance documentation service.
Key takeaways
- A depositor may nominate; section 72 applies as far as may be.
- Receipt within twenty one days; signed by an officer authorised by the Board.
- The repayment reserve is deposited with a scheduled bank by 30 April and cannot fall below twenty per cent of deposits maturing in the year.
- The register is written up within seven days of the receipt and kept for at least eight years from the financial year of the last entry.
- The register carries the depositor's PAN, nominee, security particulars and payment mandate.
Read next
- Rules 15–17: premature repayment, DPT-3 and disclosures
- Rules 4, 6 and 10: DPT-1 circular, security and application form
- Section 73: prohibition on acceptance of deposits
- Section 72: nomination by shareholders
Disclaimer: Based on the Companies Act, 2013 rules named above as consolidated in the MCA e-book (consulted on 3 October 2026), with the later notifications the article names. Later amendments, fees, forms and the Companies Act, 2013 provisions referred to should be checked. This article is general information, not legal advice; check the official text before acting.