Question

Consider the following statements of the 'Coercive Actions' Ordinance, 2025:
A. This was brought to protect and relieve the economically vulnerable groups and individuals from the coercive means of recovery by Micro Finance Institutions or Money Lending Agencies or Organizations.
B. The provisions of this Ordinance doesn't apply to banking or Non-Banking Finance Companies (NBFC) registered with RBI.
C. All Micro Finance Institutions or Money Lending Agencies shall apply for registration before the Registering Authority of the district within ninety days from the date of commencement of this Ordinance.
D. An Ombudsperson will be appointed by the Government who can act as mediator between the borrower or lender for settling the disputes.
How many of the above statement/statements is/are correct?

• A. Only 3 statements are correct
• B. Only 2 statements are correct
• C. Only 1 statement is correct
• D. All of them are correct

Hint:

Always carefully review the specific regulations mentioned in any ordinance or act, especially when it involves registrations or operational protocols for financial institutions.

Answer 1

The Correct Option is B

- Statement A is correct as it mentions the purpose of the ordinance.
- Statement B is incorrect because the provisions of the Ordinance do apply to banking or Non-Banking Finance Companies registered with RBI.
- Statement C is correct, as the ordinance requires registration of Micro Finance Institutions within ninety days.
- Statement D is also correct, as the ordinance includes the appointment of an Ombudsperson for dispute resolution.
Thus, only statements B and D are correct.