Fixed Deposits

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Aston Albuquerque (Querist)
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23 July 2010 We are a small scale manufacturing unit registered as a Partnership firm.
For business we accept fixed deposits from our friends and relatives.
Now some one says that it is illegal as per RBI norms. Only NBFC can accept FDs.
Is it true? If so then any alternate route to raise money privately from friends?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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24 July 2010 There is restriction only on companies to accept deposits and not on partnership firms. You can accept deposit from anyone u want.

That is why this form of setup (PF) is still existing.

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