Unregulated Deposit Schemes

Analysis of Banning of Unregulated Deposit Schemes Ordinance 2019

Income Tax - MCA has vide its notification dated 21st February, 2019 notified an ordinance for banning the Unregulated Deposit Scheme with immediate effect. Ordinance is named ‘The Banning of Unregulated Deposit Schemes Ordinance, 2019‘. Deposit– Deposit means an amount of money received by way of an advance or loan or in any other...

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Regulating the Unregulated Deposits

Income Tax - In light of various Ponzi/ chit fund schemes, the President of India promulgated the Banning of Unregulated Deposit Schemes Ordinance, 2019 on 21 February, 2019. By bringing this ordinance into effect, the Government has cracked down on unregulated deposit schemes, which lured investors with high interest rates and duped them of their inv...

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Check if Your Deposit is Illegal

Income Tax - President of India has promulgated the BANNING OF UNREGULATED DEPOSIT SCHEMES ORDINANCE, 2019 w.e.f. February 21, 2019. This law has been brought to safeguard the hard-earned money of ignorant depositors from scrupulous deposit takers. Scope: – This ordinance is applicable to every person in respect of following three offences: R...

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Note on Banning of Unregulated Deposit Scheme

Income Tax - Objective: Banning of Unregulated Deposit Scheme Ordinance, 2019 is promulgated with the objective of providing mechanism to ban unregulated deposit schemes and protect the interest of depositors. Applicability: Banning of Unregulated Deposit Scheme Ordinance, 2019 applicable to Whole of India except the state of Jammu and Kashmir. What i...

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Unregulated Deposits Scheme Ordinance 2019

Income Tax - THE BANNING OF UNREGULATED DEPOSITS SCHEME ORDINANCE 2019   Introduction:    The Banning of Unregulated Deposit Schemes Bill, 2019, which was passed on the 13th day of February, 2019 in the House of the People and . The Hon’ble President of India, on the aid and advice of the Union Government, on February 21, 2019 […]...

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Menace of illicit deposit schemes cracked down

Income Tax - And the day has come when the risk to remain tight in a BUDS has become more painful……. Banning of Unregulated Deposit Scheme Ordinance, 2019 (BUDS) with effect from 21.02.2019 Menace of illicit deposit schemes cracked down Meaning of Deposit A deposit has been defined to mean: An amount of money received by way of […]...

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President promulgates four Ordinances on 21.02.2019

Income Tax - President of India on the 21st February, 2019 has promulgated the following four Ordinances, namely:––1. The Muslim Women (Protection of Rights on Marriage) Second Ordinance, 2019 (Ord. 4 of 2019). 2. The Indian Medical Council (Amendment) Second Ordinance, 2019 (Ord. 5 of 2019). 3. The Companies (Amendment) Second Ordinance, 2019 (Or...

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Cabinet approves Banning of Unregulated Deposit Schemes Ordinance, 2019

Income Tax - Cabinet approves Promulgation of the Banning of Unregulated Deposit Schemes Ordinance, 2019 The Union Cabinet chaired by Prime Minister Narendra Modi has approved the Promulgation of Unregulated Deposit Schemes Ordinance, 2019. Benefits: The proposed Ordinance will immediately tackle the menace of illicit deposit taking activities in the ...

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Cabinet approves amendments to Banning of Unregulated Deposit Schemes Bill, 2018

Income Tax - Union Cabinet has given its approval to move official amendments to Banning of Unregulated Deposit Schemes Bill, 2018, pursuant to recommendations of Standing Committee on Finance (SCF). ...

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Banning of Unregulated Deposit Schemes Bill, 2018

Income Tax - Non-banking entities are allowed to raise deposits from the public under the provisions of various statutes enacted by the Central Government and the State Governments. However, the regulatory framework for deposit taking activity in the country is not seamless....

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Banning of Unregulated Deposit Schemes Act, 2019

NO. 21 OF 2019 - (31/07/2019) - THE BANNING OF UNREGULATED DEPOSIT SCHEMES ACT, 2019- NO. 21 OF 2019- An Act to provide for a comprehensive mechanism to ban the unregulated deposit schemes, other than deposits taken in the ordinary course of business, and to protect the interest of depositors and for matters connected therewith or...

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Banning of Unregulated Deposit Schemes Ordinance, 2019

No. 7 or 2019 - (21/02/2019) - (1) This Ordinance may be called the Banning of Unregulated Deposit Schemes Ordinance, 2019. (2) It extends to the whole of India except the State of Jammu and Kashmir. (3) It shall come into force at once....

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Recent Posts in "Unregulated Deposit Schemes"

Banning of Unregulated Deposit Schemes Act, 2019

NO. 21 OF 2019 (31/07/2019)

THE BANNING OF UNREGULATED DEPOSIT SCHEMES ACT, 2019- NO. 21 OF 2019- An Act to provide for a comprehensive mechanism to ban the unregulated deposit schemes, other than deposits taken in the ordinary course of business, and to protect the interest of depositors and for matters connected therewith or incidental thereto....

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Analysis of Banning of Unregulated Deposit Schemes Ordinance 2019

MCA has vide its notification dated 21st February, 2019 notified an ordinance for banning the Unregulated Deposit Scheme with immediate effect. Ordinance is named ‘The Banning of Unregulated Deposit Schemes Ordinance, 2019‘. Deposit– Deposit means an amount of money received by way of an advance or loan or in any other...

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Posted Under: Finance |

Regulating the Unregulated Deposits

In light of various Ponzi/ chit fund schemes, the President of India promulgated the Banning of Unregulated Deposit Schemes Ordinance, 2019 on 21 February, 2019. By bringing this ordinance into effect, the Government has cracked down on unregulated deposit schemes, which lured investors with high interest rates and duped them of their inv...

Read More
Posted Under: Finance |

Check if Your Deposit is Illegal

President of India has promulgated the BANNING OF UNREGULATED DEPOSIT SCHEMES ORDINANCE, 2019 w.e.f. February 21, 2019. This law has been brought to safeguard the hard-earned money of ignorant depositors from scrupulous deposit takers. Scope: – This ordinance is applicable to every person in respect of following three offences: R...

Read More
Posted Under: Finance |

Note on Banning of Unregulated Deposit Scheme

Objective: Banning of Unregulated Deposit Scheme Ordinance, 2019 is promulgated with the objective of providing mechanism to ban unregulated deposit schemes and protect the interest of depositors. Applicability: Banning of Unregulated Deposit Scheme Ordinance, 2019 applicable to Whole of India except the state of Jammu and Kashmir. What i...

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Posted Under: Finance |

Unregulated Deposits Scheme Ordinance 2019

THE BANNING OF UNREGULATED DEPOSITS SCHEME ORDINANCE 2019   Introduction:    The Banning of Unregulated Deposit Schemes Bill, 2019, which was passed on the 13th day of February, 2019 in the House of the People and . The Hon’ble President of India, on the aid and advice of the Union Government, on February 21, 2019 […]...

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Posted Under: Finance |

Unregulated Deposits Scheme – An Analysis

The Banning of Unregulated Deposits Schemes Ordinance 2019 (‘UDS’) is a bold ordinance introduced to comprehensively ban illicit deposit taking schemes. The article has been divided into the following sections – I. Background The need of UDS On the social media platforms, UDS is being viewed as a law to restrict raising of unsecured...

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Posted Under: Finance |

Deposit banned & not banned under Deposit Schemes Ordinance

Article explains What is banned under Banning of Unregulated Deposit Schemes Ordinance, 2019, What is an Unregulated Deposit Schemes,  To whom is Banning of Unregulated Deposit Schemes Ordinance, 2019 applicable and Which are the deposits not banned in Banning of Unregulated Deposit Schemes Ordinance, 2019? Presently, non-banking entitie...

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Posted Under: Finance |

Scope of ‘Deposits’ under ‘Banning of Unregulated Deposit Scheme Ordinance, 2019’

Now it is pertinent to note here that, restriction / ban has been imposed on only Unregulated Deposit Scheme and not on all deposits. It means that all deposits are not banned, and only those deposits are banned which are classified under the Unregulated Deposit Scheme....

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Posted Under: Finance |

Demystifying Banning of Unregulated Deposit Schemes Ordinance, 2019

The Banning of Unregulated Deposits Scheme Ordinance puts a check on illicit deposit schemes that dupe investors and does not prohibit any schemes regulated by statutory authorities as mentioned in Column – 3 of the First Schedule to the Ordinance....

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Posted Under: Finance |

Unregulated Deposit Ordinance-FAQ’S

Q.1 To whom the ordinance is applicable?A1 .The Ordinance is applicable to all persons receiving or soliciting deposits, working in any legal capacity, namely:(i) Individual or group of individuals(ii) A proprietorship concern(iii) A partnership firm (Registered or not )(iv) A Limited Liability Partnership Firm(v) A Company(vi) A trust (P...

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Posted Under: Finance |

Key understanding on Banning of Unregulated Deposit Schemes Ordinance, 2019

Introduction: The Banning of Unregulated Deposit Schemes Bill, 2019 was passed by the Lok Sabha on 13.02.2019 but could not be passed by the Rajya Sabha. Since the Parliament is not in session, the BANNING OF UNREGULATED DEPOSIT SCHEMES ORDINANCE, 2019 has been issued by the President of India vide Notification dt. 21.02.2019. According t...

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Posted Under: Finance |

Rigors of Banning of Unregulated Deposit Scheme Ordinance, 2019: realignment of financial transaction

The Act comes in force at once with effect from 21st February, 2019 (Section 1(3)). This will mean that the Ordinance shall not have retrospective application and shall not apply to transactions which have taken place prior to the Act coming in force which shall continue to be governed by the law as it existed prior to the Act coming in f...

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Posted Under: Finance |

Unregulated Deposit Scheme- Important Points

Banning of Unregulated Deposit Schemes Ordinance 2019 (Applicable from 13th Feb 2019) Meanings Deposit: an amount of money received by way of an advance or loan or in any other form, by any deposit taker with a promise to return whether after a specified period or otherwise, either in cash or in kind or in […]...

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Posted Under: Finance |

No Ban on funds Received for Business or Personal Purposes: Govt

No (26//0/2/20)

Banning of Unregulated Deposit Schemes Ordinance, 2019 does not ban small and medium enterprises (SMEs) from receiving loans in the course of, or for the purpose of, business, the government has clarified. The ministry was responding to an ET story tilted ‘Unregulated deposits rule may have collateral damage’ on Monday which said that...

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Banning of Unregulated Deposit Schemes Ordinance, 2019: Brief Analysis

In a bid to save credulous investors from ponzi schemes, the Central government has banned unregulated deposit schemes, a move that may help tackling the menace of illicit deposit-taking activities. Pursuant to Banning of Unregulated Deposit Schemes Ordinance, 2019 now any Individual or group of individuals cannot take any deposit or loa...

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Posted Under: Finance |

FAQ on Banning of Unregulated Deposit Schemes Ordinance, 2019

Q1 What is  Banning of Unregulated Deposit Schemes Ordinance, 2019 Answer- The Banning of Unregulated Deposit Schemes Ordinance, 2019 has been promulgated to have a central legislation to tackle the menace of illicit deposits taking activities in the country. Presently, non-banking entities are allowed to raise deposits from the public u...

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Posted Under: Finance |

Banning of Unregulated Deposit Schemes Ordinance, 2019: Detailed Analysis

Banning of Unregulated Deposit Schemes Ordinance, 2019 provide for a comprehensive mechanism to ban the Unregulated Deposit Schemes and to protect the interest of depositors and for matters connected therewith or incidental thereto. (For example schemes like Sharda Chit Fund and  Rose Vally Scam of West Bengal which has cheated 17 Lakhs ...

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Posted Under: Finance |

Menace of illicit deposit schemes cracked down

And the day has come when the risk to remain tight in a BUDS has become more painful……. Banning of Unregulated Deposit Scheme Ordinance, 2019 (BUDS) with effect from 21.02.2019 Menace of illicit deposit schemes cracked down Meaning of Deposit A deposit has been defined to mean: An amount of money received by way of […]...

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Posted Under: Finance |

Prohibition on Unregulated Deposit Schemes w.e.f February 21,2019

In order to put a check on illicit deposit-taking activities like Saradha scam and Rose Valley chit fund scam in the country that dupe poor and the financially illiterate of their hard-earned savings. The President of India promulgated the Banning of Unregulated Deposit Scheme Ordinance, 2019 w.e.f. February 21, 2019 (hereinafter referred...

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Posted Under: Finance |

Banning of Unregulated Deposit Schemes Ordinance 2019: Important points

The Govt passed the Banning of Unregulated Deposit Schemes Ordinance, 2019 on 21st Feb, 2019 to ban unregulated deposits. Article explains Who are Depositor and deposit taker, Banning of Unregulated Deposit schemes (UDS), What is Unregulated Deposit Scheme(UDC) and Regulated Deposit Scheme(RDS), What kind of deposits are considered under ...

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Posted Under: Finance |

Detailed analysis of Banning of Unregulated Deposit Schemes Ordinance, 2019

Through this article, an attempt has been made to understand the implication of Banning of Unregulated Deposit Schemes Ordinance, 2019. For the sake of better understanding, the author has divided the article into four parts comprising of the definition, the substantive law and the sanctions imposed....

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Posted Under: Finance |

Banning of Unregulated Deposit Schemes Ordinance, 2019 – Whether Applicable To Normal Business Activities?

Whether Banning of Unregulated Deposit Schemes Ordinance, 2019 also applicable to deposits, unsecured loans etc. accepted / taken for normal trading, manufacturing etc. activities or for personal needs....

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Posted Under: Finance |

Deposits exempt under Banning of Unregulated Deposit Schemes Ordinance, 2019

Banning of Unregulated Deposit Ordinance,2019, exempts Individual, Firm, Companies & LLP etc. for taking any loan and deposit for their course of business as per section 2(4) e,f ,l and other provisions. For the purpose of Banning of Unregulated Deposit Schemes Ordinance, 2019 “deposit” means an amount of money received by way of...

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Posted Under: Finance |

Important aspects of Unregulated Deposit Schemes Ordinance, 2019

The President has assented The Banning of Unregulated Deposit Schemes Bill, 2019, which was passed on the 13th day of February, 2019 in the House of the People; The purpose of Banning of Unregulated Deposit Schemes Ordinance, 2019 is to provide for a comprehensive mechanism to ban the unregulated deposit schemes and to protect the intere...

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Posted Under: Finance |

Deposits, Unsecured loans taken for Normal Business are not banned

, Unregulated Deposits Scheme Ordinance is an Ordinance to ban unregulated deposits as well as to protect the interest of Depositors. This ordinance was introduced on 21-Feb-2019. Everyone needs to study this ordinance of deposit and protect himself rather than believing on fake news....

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Banning of Unregulated Deposits Schemes- All you want to know

Introduction: – 1. On 21.02.2019, Govt. Of India has brought Banning of Unregulated Deposit Schemes Ordinance 2019 with following objectives: – a) For banning of unregulated deposits schemes; b) To protect the interest of depositors; and c) Other matters relating to or connected to the above two objectives 2. The Banning of Un...

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Posted Under: Finance |

Banning of Unregulated Deposit Scheme- Clarification Needed

Government has issued The Banning of Unregulated Deposit Schemes Ordinance 2019 on 21.02.2019. Pursuant to this ordinance now any Individual or group of individuals can’t take any deposit or loan from any person other than relatives and Partnership firm can take deposit or loan from relatives of partner or partners only....

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Posted Under: Finance |

Banning of Unregulated Deposit Schemes Ordinance, 2019

No. 7 or 2019 (21/02/2019)

(1) This Ordinance may be called the Banning of Unregulated Deposit Schemes Ordinance, 2019. (2) It extends to the whole of India except the State of Jammu and Kashmir. (3) It shall come into force at once....

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President promulgates four Ordinances on 21.02.2019

President of India on the 21st February, 2019 has promulgated the following four Ordinances, namely:––1. The Muslim Women (Protection of Rights on Marriage) Second Ordinance, 2019 (Ord. 4 of 2019). 2. The Indian Medical Council (Amendment) Second Ordinance, 2019 (Ord. 5 of 2019). 3. The Companies (Amendment) Second Ordinance, 2019 (Or...

Read More
Posted Under: Finance |

Cabinet approves Banning of Unregulated Deposit Schemes Ordinance, 2019

Cabinet approves Promulgation of the Banning of Unregulated Deposit Schemes Ordinance, 2019 The Union Cabinet chaired by Prime Minister Narendra Modi has approved the Promulgation of Unregulated Deposit Schemes Ordinance, 2019. Benefits: The proposed Ordinance will immediately tackle the menace of illicit deposit taking activities in the ...

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Posted Under: Finance |

Cabinet approves amendments to Banning of Unregulated Deposit Schemes Bill, 2018

Union Cabinet has given its approval to move official amendments to Banning of Unregulated Deposit Schemes Bill, 2018, pursuant to recommendations of Standing Committee on Finance (SCF). ...

Read More
Posted Under: Finance |

Banning of Unregulated Deposit Schemes Bill, 2018

Non-banking entities are allowed to raise deposits from the public under the provisions of various statutes enacted by the Central Government and the State Governments. However, the regulatory framework for deposit taking activity in the country is not seamless....

Read More
Posted Under: Finance |

Cabinet approves New Bill to ban Unregulated Deposit Schemes and Chit Funds (Amendment) Bill, 2018

In a major policy initiative to protect the savings of the investors, the Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval to introduce the following bills in the Parliament:-...

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Posted Under: Finance |

Draft Law on Ponzi Schemes

A copy of the Report of the IMG along with the draft Banning of Unregulated Deposit Schemes and Protection of Depositors’ Interests Bill was placed on the website of the Department of Financial Services (DFS) in March, 2016 for eliciting public comments. ...

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Posted Under: Finance |

Large scale achievements of BJP Govt. under various Schemes

Large scale achievements made under various Schemes including PMJDY; 26.03 crore accounts opened as on 21st December, 2016 under PMJDY out of which 15.86 crore accounts are in rural areas and 10.17 crore in urban areas;...

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Posted Under: Finance |

Govt invites comment on revised Draft Bill on Banning of Unregulated Deposit Schemes

Comments / inputs / suggestions on the Draft Bill on Banning of Unregulated Deposit Schemes and Protection of Depositors’ Interests Bill, 2016 invited up to 17th December 2016....

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Posted Under: Finance |

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