Where should the application money be deposited by prospective investors?

A scheduled bank specified in the prospectus

The correct answer is option 2- A scheduled bank specified in the prospectus.

The amount of money paid with various instalment represents the contribution to share capital and should ultimately be credited to share capital. However, for the sake of convenience, initially individual accounts are opened for each instalment. All money received along with application is deposited with a scheduled bank in a separate account opened for the purpose.