Rules 18 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.
The closing rules of the Deposit Rules are short. They say who decides whether the rules apply to a particular company, extend sections 73 and 74 to eligible companies, deal with deposits that existed before the Act, set a fine for contravention and list the forms in the Annexure. This article states rules 18 to 22 as amended up to G.S.R. 663(E) dated 29 August 2022 per the MCA e-book; later amendments should be checked.
Questions on whether the rules apply to a company are decided by the Central Government in consultation with the Reserve Bank of India. Sections 73 and 74 apply, with the necessary changes, to deposits from the public by eligible companies under section 76(2). Form DPT-4 was the statement of deposits existing at the commencement of the Act. A contravention with no punishment in the Act carries a fine up to five thousand rupees, plus five hundred rupees a day for a continuing contravention. The Annexure lists DPT-3 and DPT-1.
Rule 18: questions of applicability
If any question arises as to the applicability of the rules to a particular company, it shall be decided by the Central Government in consultation with the Reserve Bank of India. The rule names no form or time limit for the question; companies in doubt should seek advice before accepting deposits. Our compliance advisory service reviews such questions.
Rule 19: sections 73 and 74 for eligible companies
Under section 76(2), the provisions of sections 73 and 74 apply, mutatis mutandis, to acceptance of deposits from the public by eligible companies. This means an eligible company is not simply outside those sections; they are applied to it with the changes the context needs. See our posts on section 76, section 73 and sections 74 and 75, and on the net worth and turnover test for an eligible company.
The Explanation deals with a company that had accepted or invited public deposits under the Companies Act, 1956 and its rules ("Earlier Deposits") and has been repaying them with interest under those provisions. Section 74(1)(b) is deemed complied with if the company complies with the requirements of the Act and these rules and continues to repay the deposits and interest on the due dates for the remaining period, in accordance with the terms and period of the Earlier Deposits. The 1956 Act is quoted as printed; check the current law.
A further proviso says that fresh deposits by every eligible company must be in accordance with Chapter V of the Act and these rules. Drafting note: the rule prints this as "Provided further" although no first proviso appears before it; read it as printed.
Rule 20: statement of deposits existing at commencement
For the purposes of section 74(1)(a), the statement is in Form DPT-4. The rule is tied to the commencement of the Act and is now of historical interest; the date has passed.
Rule 21: punishment for contravention
If any company under section 73(2), or any eligible company inviting deposits, or any other person contravenes any provision of these rules for which no punishment is provided in the Act, the company and every officer of the company in default are punishable with a fine which may extend to five thousand rupees. Where the contravention is continuing, there is a further fine which may extend to five hundred rupees for every day after the first day during which it continues.
The figures are quoted as printed in the rule. The Act has its own penal provisions for deposits, which this rule expressly leaves in place (the rule applies only where "no punishment is provided in the Act"); check the Act's penalty provisions as in force, starting with our post on section 76A.
| Element | What the rule says |
|---|---|
| Who is liable | The company and every officer in default. |
| Maximum fine | Five thousand rupees. |
| Continuing contravention | A further fine up to five hundred rupees for every day after the first day. |
| Scope | Contraventions of the rules for which the Act provides no punishment. |
Rule 22: the Annexure
The Annexure lists two forms: DPT-3 and DPT-1. The e-book's notes record that DPT-3 was substituted by the Second Amendment Rules of 2017 and again by the Amendment Rules of 2019 (22 January 2019), and DPT-1 by the Amendment Rules of 2018, in force from 15 August 2018. The forms are not reproduced in the e-book; this article describes only what the rules say they are for: DPT-1 is the circular or advertisement inviting deposits (rule 4), DPT-3 is the annual return (rule 16), and rule 7 refers to DPT-2 for the deposit trust deed. Rule 20 refers to DPT-4. The Annexure as printed lists two forms only.
Example
Sundaram Beverages Limited, a public company, had public deposits under the 1956 Act and has kept repaying them with interest on the due dates. As an eligible company it complies with the Act and the rules for the rest of the old deposits' terms, so section 74(1)(b) is treated as complied with, and any new deposits it takes follow Chapter V and the rules. If it were to miss a requirement in the rules for which the Act prescribes no punishment, the company and each officer in default could face a fine up to five thousand rupees and, for a continuing breach, up to five hundred rupees for every day after the first.
Need help with an eligible company's deposits?
Eligible company status, old deposits and the penalty exposure all depend on the facts. If you want the position reviewed before inviting or repaying deposits, see our compliance advisory service.
Key takeaways
- The Central Government decides applicability questions in consultation with the RBI.
- Sections 73 and 74 apply to eligible companies with the necessary changes.
- Earlier Deposits under the 1956 Act are treated as complying with section 74(1)(b) on the conditions in the Explanation.
- Fine up to five thousand rupees, plus five hundred rupees a day for a continuing contravention, where the Act provides no punishment.
- The Annexure lists DPT-3 and DPT-1.
Read next
- Rules 15–17: premature repayment, DPT-3 and disclosures
- Rule 3: terms of deposits, period, limits and interest
- Section 76A: punishment for contravention of deposit provisions
- Eligible company under the deposit rules
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.