The Banning of Unregulated Deposit Scheme 2019

1.       An amount received in the course of, or for the purpose of, business and bearing a genuine connection to such business shall be deemed to be deposits on the expiry of

• (a) 30 days

• (b) 15 days

• (c) Immediately

• (d) None of the above

2. 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 on expiry of

• (a) 30 days

• (b) 15 days

• (c) Immediately

• (d) None of the above

3.       Which one of the following is not covered in the definition of deposit taker under this Act?

• (a) A co-operative society or a multi-State co-operative society

• (b) A trust

• (c) A partnership firm

• (d) A banking company

4.       On which of the following this Act is applicable?

• (a) Loans received from banks

• (b) contributions by partners of a partnership firm or LLP

• (c) Prize chits or money circulation scheme

• (d) Loans received by an individual from his relatives

5.       Who shall create, maintain and operate an online database?

• (a) Central government

• (b) Competent Authority (section 7)

• (c) Regulators

• (d) Authority designated by CG (section 9)

6.       What is the timeline of the procedural compliance under the Act after provisional attachment by the Competent authority?

• (a) 30 days

• (b) 15 days which may extend upto 30 days 

• (c) 30 days which may extend 60 days

• (d) 60 days

7.        What is the timeline for Designated Court to complete the proceedings under Section 15 of the Act?

• (a) 30 days from the receipt of the application for confirmation of attachment

• (b) 180 days  from the receipt of the application for confirmation of attachment

• (c) 60 days from the date of final order of the Designated Court

• (d) 180 days  from the date of final order of the Designated Court

8.        Can the competent authority alienate the attached property?

• (a) Yes

• (b) No

9. Any Deposit taker who contravenes the provisions of section 4 shall be punishable with?

• (a) Imprisonment upto 3 years & fine upto 10 lakh rupees

• (b) Imprisonment upto 10 years & fine upto 10 lakh rupees

• (c) Imprisonment upto 7 years & fine upto 25 crore rupees

• (d) Imprisonment upto 5 years & fine upto 25 crore rupees

10. Who shall refer the matter to the Central Government for investigation by CBI ?

• (a) Designated Court

• (b) Competent Authority

• (c) State Government

• (d) Supreme Court