Chapter IIIC — Deposits by Unincorporated Bodies
Section 45S: Deposits not to be accepted in certain cases
Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026
Section 45S prohibits specified unincorporated bodies and individuals from accepting deposits in the circumstances stated in the section, while preserving the statutory exclusions for receipts that are not treated as prohibited deposits.
Operative provisionOfficial sources mappedProvision-specific decode
Finin2min - Section 45S in 2 minutes
Statutory structure and clause / subsection decode
This map separates the operative limbs of this provision so thresholds, powers, conditions and exceptions are not collapsed into a single summary.
Scope
Section 45S prohibits specified unincorporated bodies and individuals from accepting deposits in the circumstances stated in the section, while preserving the statutory exclusions for receipts that are not treated as prohibited deposits.
Operative limb
The rule targets deposit-taking outside the regulated corporate/banking framework and requires careful classification of the recipient and the receipt.
Legal boundary
Do not assume every loan to a partnership is prohibited: test each statutory exclusion, including the relationship/purpose categories set out in the provision and any applicable legal changes.
Worked practical example
Facts. If a partnership repeatedly raises repayable money from the public at promised interest, the adviser should test Section 45S directly rather than treat the receipts as ordinary unsecured business loans because they are documented as 'advances'.
Compliance points and common mistakes
- Do not decide the issue from the heading alone. Map the facts to the operative words of Section 45S and to each relevant subsection, clause, proviso or explanation shown above.
- Keep the statutory question separate from the operational overlay. Do not assume every loan to a partnership is prohibited: test each statutory exclusion, including the relationship/purpose categories set out in the provision and any applicable legal changes.
- Do not convert an exception, exemption or discretionary RBI/Government power into an automatic entitlement. Record the authority, conditions and effective date.
- Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.
Connected provisions and instruments
Section 45S has no universal instrument dependency in this package. Add an RBI circular or direction only when its subject, entity and effective date cover the issue being analysed.
Questions and answers
What is the purpose of Section 45S?
Deposits not to be accepted in certain cases: Section 45S prohibits specified unincorporated bodies and individuals from accepting deposits in the circumstances stated in the section, while preserving the statutory exclusions for receipts that are not treated as prohibited deposits.
Which statutory limb should be checked first?
Scope - Section 45S prohibits specified unincorporated bodies and individuals from accepting deposits in the circumstances stated in the section, while preserving the statutory exclusions for receipts that are not treated as prohibited deposits.
What is the next legal boundary?
Operative limb - The rule targets deposit-taking outside the regulated corporate/banking framework and requires careful classification of the recipient and the receipt.
What record should support the conclusion?
Section 45S file evidence: Maintain the partnership/association constitution, lender relationship, agreement, source/purpose of funds and evidence supporting any exclusion relied upon.
Primary sources
- Department of Financial Services - consolidated RBI Act (states amendments through Finance Act, 2022)
- India Code - Reserve Bank of India Act, 1934
Source control for Section 45S: use the official consolidated RBI Act for the statutory text and footnotes, then separately reconcile any post-Finance Act 2022 amendment, commencement notification or RBI instrument relevant to the event date.