Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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collecting funds from the public

Querist : Anonymous (Querist) 07 September 2010 This query is : Resolved 
if a business organisation collects money from public in instalments around 1000 per month for 20 months and they pay them back including some money they collect nearly 20 laks per year do they need to have any licence for doing that......
James Arun (Expert) 08 September 2010
This appears to come under the Chit Funds Act. Registration is mandatory for any chit value above Rs.100 (One hundred only).

If this is not a chit fund, and the said business organization is collecting deposits from public, it can do so if it is authorized by RBI to collect deposit as an NBFC.

Acceptance of deposits by companies engaged in activities including plantation activities, commodities trading, multilevel marketing, manufacturing activities, housing finance, nidhis (mutual benefit financial companies), and potential nidhis (mutual benefit company) and companies engaged in collective investment schemes do not come under the purview/regulations of the RBI.

Individuals, firms and other unincorporated association of individuals or bodies shall not accept deposits from the public–

(i) if his or its business wholly or partly includes any of the financial activities such as loans and advances, acquisition of shares or marketable securities, leasing or hire purchase activities , or

(ii) if his or its principal business is that of receiving deposits or lending in any manner.

Uma parameswaran (Expert) 09 September 2010
You need registration.
Querist : Anonymous (Querist) 10 September 2010
thank you very much for ur answer i need to know how we can get registration whoom we need to approach how much we need to pay... do we need to show any property to get licence


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