Section 26 of The Banning of Unregulated Deposit Schemes Act, 2019
Whoever fails to give the intimation required under sub-section (1) of section 10 or fails to furnish any such statements, information or particulars as required under sub-section (2) of that section, shall be punishable with fine which may extend to five lakh rupees.
Summary
- This rule sets the punishment for failing to follow the information and reporting requirements of the law.
- Any deposit taker who does not tell the government about their business as required can be punished.
- Businesses must follow the specific time and format rules for reporting their business activities to the central authority.
- If the Competent Authority asks for specific records or statements and a business refuses, they face a fine.
- The only punishment mentioned for these specific reporting failures is a monetary fine.
- The fine for these failures can be as high as five lakh rupees.
Practical examples
FAQ
1. What is the maximum fine under Section 26 of the Banning of Unregulated Deposit Schemes Act?
The fine for failing to provide required information or business intimations can extend to five lakh rupees.
2. Who can be punished under Section 26 of the Banning of Unregulated Deposit Schemes Act, 2019?
Anyone who fails to give the business intimation required by Section 10(1) or the particulars required by Section 10(2).
3. Is there a jail sentence for failing to provide business information under Section 26?
No, Section 26 of the 2019 Act only lists a fine as the punishment for these specific failures.
Test yourself
Q1.Under Section 26 of The Banning of Unregulated Deposit Schemes Act, 2019, what is the penalty for failing to intimate the authority about a deposit business?
Q2.According to Section 26 and Section 10 of The Banning of Unregulated Deposit Schemes Act, 2019, which action triggers a punishment?
Q3.Under Section 26 of The Banning of Unregulated Deposit Schemes Act, 2019, what happens if a deposit taker ignores a request for statements from the Competent Authority?
Q4.Does Section 26 of The Banning of Unregulated Deposit Schemes Act, 2019 apply if a business refuses to share information with the Competent Authority?