What is Unregulated deposit Scheme in India?

The Unregulated Deposit Scheme Ordinance 2019, famously known as unregulated Deposit statute is viewed as the most affecting rushed law after the presentation of GST and Demonetization in India. This law goes for controling the unregulated store, Ponzi plot, unlawful chit reserves, uncover the shrouded stores. Further to a degree it forces the confinement and restriction over progressing just as acknowledgment of such unregulated store.

The Unregulated Deposit Scheme Ordinance 2019

The ordinance was promulgated by the present Prime Minister Mr. Ram Nath Kovind on the 21^st day of February 2019. It was passed in Lok Sabha but could not succeed in Raj Sabha. It clearly distinguishes the deposit in Regulated deposit and unregulated deposit. Additionally the Unregulated deposit is prohibited as well as punishable under the new ordinance. It aims to not to repeat the earlier big scams like Saradha and Rose Valley.

What is Unregulated deposit?

The unregulated deposit is defined as the depositor scheme which is not Regulated Deposit Scheme as prescribed in the Fist schedule of the Unregulated Deposit Scheme Ordinance 2019. Further, it relates such arrangements wherein the deposit is accepted otherwise solicited by such deposit taker.

Scope and applicability of the unregulated deposit ordinance:

Exempted deposit:

The ordinance exempts all such Individuals, Company, LLP, Firms taking loan and deposit for their course of business as prescribed under the 2(4) e, f, I and such other provisions of the Unregulated Deposit Scheme Ordinance 2019.