ECONOMIC POLICY-Missing Big Picture

acceptance by non-corporate bodies has been strengthened and clarified in the amended act. Non-corporate entities carrying on financial activities (such as moneylending) can accept deposits from relatives and borrow money from banks and other institutions as allowed, but are prohibited from accepting public deposits. The RBI has also clarified that the intention is to prevent unincorporated bodies from accepting deposits for lending; in other words, commercial and business activities, particularly of non-corporate manufacturing and trading units, would not be affected.