Private Companies can accept deposits from a relative of a Director

MCA Update on Deposit From Relative of a Director By Private Limited Company:

Deposits rules are quickly getting aligned with old 58A exempted rules to private limited company.

Without any upper limit of amount, now a private company can  accept unsecured loans apart from director even from a relative (as per definition) of a director of the company with simple declaration saying the relative has not borrowed same from others. The relative need not be a shareholder of the company.


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Mitesh Katira

About Mitesh Katira

Mitesh's expertise lies in handling accounts Outsourcing, Management consultancy, Management & internal Audits and technology issues cutting across different clients particularly Family Owned, professionally Managed businesses, Private Equity/ Venture Capital backed and Multinational companies. He is convenor for Information Technology Committee of the CTC i.e., Chember of Tax Consultants which is the oldest association of Tax Practitioners in India. Mitesh has been a Convenor of the Ghatkopar CA CPE Study Circle for two years to lead the professional education initiative consisting of more than 300 Chartered Accountants. Socially, he is involved as a part of regional committee of Samskrita Bharati which promotes Samskrit language as key to cultural revival of India.

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