Crackdown on ponzi schemes: Govt to bring in new bill to ban unregulated deposit schemes

New Delhi: The government on Tuesday said it will come out with a new bill in Parliament to ban unregulated deposit schemes with a view to checking defrauding of gullible investors.

Representational image. Reuters.

Representational image. Reuters.

The Cabinet, chaired by Prime Minister Narendra Modi, also decided to make changes in the Chit Funds Act to enable greater financial access of people to other financial products.

The Union Cabinet, an official release said, has given approval to introduce the banning of Unregulated Deposit Schemes Bill, 2018, in Parliament.

"The bill is aimed at tackling the menace of illicit deposit taking activities in the country.

"Companies/ institutions running such schemes exploit existing regulatory gaps and lack of strict administrative measures to dupe poor and gullible people of their hard-earned savings," it said.

As regards changes in the Chit Fund Act, it said they are aimed at facilitating orderly growth of the segment and remove bottlenecks being faced by the industry.

The amendment will enable "greater financial access of people to other financial products", the release said.


Updated Date: Feb 20, 2018 15:53 PM

Also Watch

Watch: The true stories from Dharavi that inspired Rajinikanth's Kaala
  • Thursday, March 8, 2018 Watch: Cyrus Khan talks about Parkour, jumping across walls and why he hates sitting
  • Thursday, May 31, 2018 Unwind: India's basketball sensation Amjyot Singh has his eyes set on becoming an NBA regular
  • Monday, May 28, 2018 First Day First Showsha — Review of Solo: A Star Wars Story in 10 questions
  • Saturday, May 19, 2018 Social Media Star: Rajkummar Rao and Bhuvan Bam open up about selfie culture, online trolls

Also See