3. Banning of Unregulated Deposit Schemes. — On and from the date of commencement of this
Act,—
(a) the Unregulated Deposit Schemes shall be banned; and
(b) no deposit taker shall, directly or indirectly, promote, operate, issue any advertisement soliciting
participation or enrolment in or accept deposits in pursuance of an Unregulated Deposit Scheme.
4. Fraudulent default in Regulated Deposit Schemes. —No deposit taker, while accepting deposits
pursuant to a Regulated Deposit Scheme, shall commit any fraudulent default in the repayment or return
of deposit on maturity or in rendering any specified service promised against such deposit.
5. Wrongful inducement in relation to Unregulated Deposit Schemes.—No person by whatever
name called shall knowingly make any statement, promise or forecast which is false, deceptive or
misleading in material facts or deliberately conceal any material facts, to induce another person to invest
in, or become a member or participant of any Unregulated Deposit Scheme.
6. Certain scheme to be Unregulated Deposit Scheme.—A prize chit or a money circulation scheme
banned under the provisions of the Prize Chits and Money Circulation Scheme (Banning) Act, 1978 (43 of
1978) shall be deemed to be an Unregulated Deposit Scheme under this Act.