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Union Cabinet Approves Banning of Unregulated Deposit Schemes Bill-2018
Union Cabinet Approves Banning of Unregulated Deposit Schemes Bill-2018
Union Cabinet, chaired by Prime Minister Narendra Modi, on 20th February 2018, has approved to introduce the ‘Banning of Unregulated Deposit Schemes Bill-2018’ in Parliament, New Delhi.
Banning of Unregulated Deposit Schemes Bill-2018 would be an initiative to protect the savings of the investors from Ponzi schemes.
The Unregulated Deposit Schemes Bill-2018 is aimed to manage the threats of illegal deposit-taking activities in the country.
The Unregulated Deposit Schemes Bill-2018 focuses on companies/institutions, those who are facilitating such schemes and have utilized existing regulatory gaps and lack of strict administrative measures to deceive poor and innocent people of their hard-earned savings.
The Unregulated Deposit Schemes Bill-2018 creates three different types of offenses, namely, running of Unregulated Deposit Schemes, fraudulent default in Regulated Deposit Schemes, and wrongful inducement in relation to Unregulated Deposit Schemes.
The Unregulated Deposit Schemes Bill-2018 will cater for complete prohibition of unregulated deposit-taking activity, Deterrent punishment for promoting or operating an unregulated deposit-taking scheme and stringent punishment for fraudulent default in repayment to depositors
