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Cabinet nod for Bill to ban unregulated deposit schemes

Union Minister Prakash Javadekar. File

Union Minister Prakash Javadekar. File  

Union Minister Prakash Javadekar said the Union Cabinet has approved Banning of Unregulated Deposit Schemes Bill to help people suffering due to chit fund scams

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved ‘Banning of Unregulated Deposit Schemes Bill, 2019’ to tackle the menace of ponzi schemes in the country.

The Bill, which will replace the Banning of Unregulated Deposit Schemes Ordinance, 2019, will be introduced in the ongoing session of the Parliament.

“The Bill will help tackle the menace of illicit deposit taking activities in the country, which at present are exploiting regulatory gaps and lack of strict administrative measures to dupe poor and gullible people of their hard-earned savings,” an official statement said.

“SEBI and RBI approved deposits will be allowed… last time when this Bill was brought in the Parliament, an issue was raised that in normal business practice friends and relatives also give deposits when one is starting a new venture and it should not be treated as unregulated. Therefore, that exception has been now made,” Union Minister Prakash Javadekar said post the meeting.

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Printable version | Feb 29, 2020 9:56:39 AM | https://www.thehindu.com/news/national/cabinet-nod-for-bill-to-ban-unregulated-deposit-schemes/article28355329.ece

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