Government Bans Unregulated Deposits – High Impact Ordinance

The 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 or partner or partners only.

Copy of Ordinance can be downloaded from here

Ordinances are laws that are promulgated by the President of India on the recommendation of the Union Cabinet. They can only be issued when Parliament is not in session. They enable the Indian government to take immediate legislative action. Ordinances cease to operate either if Parliament does not approve of them within six weeks of reassembly, or if disapproving resolutions are passed by both Houses. It is also compulsory for a session of Parliament to be held within six months