Answer» - Accepting deposits from the public is an important source of raising funds for a company.
- The company needs to follow certain terms and conditions while collecting deposits from the public.
- Similarly, on the other side, provisions issued by the Central Government, Companies Rules 2014, and directives issued by the Reserve Bank of India do not allow companies to accept deposits.
- Banking companies, Non-Banking Finance Companies, Housing Finance companies are not allowed to accept deposits.
- Thus, it is rightly said, that all companies cannot accept deposits from the public.
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