Latest News
-
Rs 17/Share Dividend: Record Date On April 26; Buy The ICICI Group Stock To Be Eligible? -
Honasa Consumer to Strengthen Operations by Merging Fusion Cosmeceutics and Just4Kids -
Wipro Reports 7.8% Decline in Q4 Net Profit; CEO Highlights Economic Challenges -
IREDA Hits Record Annual PAT of Rs 1,252 Cr in FY24; Q4 Profits Up by 33% -
Massive Employee Exodus Hits India's Top IT Companies in FY23-24 -
Air India Enhances Operational Efficiency with New Crew Management System -
BlackRock Acquires Shares in Electrosteel Castings and PTC India for Rs 207 Crore -
IndiGo Enhances Domestic Routes with Direct Chennai-Durgapur Flights -
Tesla to Recall Nearly 4,000 Cybertrucks Over Accelerator Pedal Fault -
Reliance, ONGC, Tata, Adanis: Energy Stocks Didn't Get The Memo Of Bears, Up 12% In 30-Days; 10 Stocks To BUY
6 Entities Which Are Authorized To Raise Fixed Deposits From The Public
We often come across news of frauds happening on deposits raised from the general public. This is because many investors invest money without understanding the risk and with a desire for higher interest rates.
Many individuals fail to recognize the right entities to make investments and face trouble when such companies vanish with their money.
Here are 6 entities which are authorized to raise fund:
Commercial and Cooperative Banks
All Commercial and Co-operative Banks are entitled to accept deposits. Commercial banks include all scheduled banks, private banks, public sector banks and foreign banks.
Co-operative Banks include all scheduled urban co-operative banks and state co-operative banks.
Banks under commercial and co-operative banks are regulated by the Reserve Bank of India (RBI).
Non-Banking Finance Companies (NBFCs)
Note that not all NBFCs are authorized to accept a deposit, while a few are allowed up to a certain limit. Non-Banking Finance Companies are regulated by the RBI.
As per rules, NBFCs should have Certificate of Registration under Section 45 IA of RBI Act, to hold or accept deposits from the public.
Housing Finance Companies (HFCs)
Only a few HFCs are permitted to accept deposits such as Dewan Housing Finance Corporation, PNB Housing Finance, LIC Housing Finance etc. HFCs are regulated by the National Housing Bank (NHB).
Cooperative Credit Societies
Cooperative Credit Societies can only accept deposits from their voting members. It is regulated by the Registrar of Cooperative Societies (RCS).
Multi-State Cooperative Societies
Multi-State Cooperative Societies are eligible to accept deposits only from their voting members and it is regulated by the Central Registrar of Cooperative Societies.
Other Companies
Only eligible companies are allowed to accept deposits under Companies (Acceptance of Deposit) Rules, 2014 up to a certain limit. These companies are regulated by Ministry of Corporate Affairs (MCA).
