Baning of unregistered deposit -what is prohibited is unregulated deposite scheme which is defined as below:-

  1. UDS means a scheme or an arrangement under which deposits are accepted or solicited by any deposit taken by way of business and which is not a regulated deposit scheme.
  2. The important point is here that where there is a business of individual of taking loan only then this will apply like micro finance,chit fund companies etc.
  3. It means that if loan is taken for Business purpose where Business is not of taking loan then this act will not apply.
  4. Further in case of corporates as per schedule 1 Chapter V deposits of Cos act are treated as regulated deposits only. In other words corporates are also not covered.
  5. Even statement of objects and reasons of the bill provide clearly that it is applicable only to unregulated deposits .
    * As per *clause 4 of Section 2* of the Ordinance, definition of deposit as under:

Deposit means 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 the form of a specified service, with or without any benefit in the form of interest, bonus, profit or in any other form, but does not include—

(l) an amount received in the course of, or for the purpose of, business and bearing a genuine connection to such business including—

Provided that if the amounts received under items (i) to (iv) become refundable, such amounts shall be deemed to be deposits on the expiry of fifteen days from the ** date on which they become due for refund**

Provided further that where the said amounts become refundable, due to the deposit taker not obtaining necessary permission or approval under the law for the time being in force wherever required, to deal in the goods or properties or services for which money is taken, such amounts shall be deemed to be deposits. *My view contact must be seen for it *the term “payable on demand Vs due for refund* almost always is associated with promissory notes. As the words imply, the term means a debt must be paid when the payee asks for it. … Any note without a specified time of payment is considered payable on demand.my view must be *payable on demand *is date of due for refund**

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