Supreme Court: Ad Valorem Court Fees Apply to Appeals Seeking Statutory Land Acquisition Benefits  ||  Supreme Court: Cruise Voyages Remain Shipping Business under Section 44B Despite Onboard Services  ||  Supreme Court: People Abandon Cattle on Roads But Object to Their Use For Food  ||  Supreme Court Stays CIC Decision Declaring NSE Subject to the RTI Act  ||  SC: Wife May Be Denied Interim Maintenance if Husband Ex Facie Establishes Adultery  ||  SC: Prior Testimony is Inadmissible without Section 299 CrPC Order against Absconder  ||  Supreme Court: Administrative Action Can't Be Invalidated Solely for Lacking Formal Order  ||  Calcutta High Court: Section 141 NI Act Does Not Apply to Sole Proprietorships  ||  Orissa High Court Criticizes Magistrate for Defying Direction in Cheque Bounce Case  ||  Delhi High Court Safeguards Yuvraj Singh's Personality Rights, Orders Deepfake Takedown    

Banning of Unregulated Deposit Schemes and Protection of Depositors’ Interests Bill, 2015 - (03 May 2016)

MANU/PIBU/0414/2016

Banking

The suggestion period for ‘Banning of Unregulated Deposit Schemes and Protection of Depositors’ Interests Bill’ may have closed on 30 April 2016, but what do the proposals promise?

The Bill is a culmination of measures suggested by an Inter-Ministerial Group identifying gaps in the existing regulatory framework for ‘deposit taking’. Basically, it bans entities not supervised by any regulator or government body from taking deposits.

Unregulated deposit schemes, like pyramid schemes, have been used to swindle depositors out of enormous sums of money. The Saradha chit fund in West Bengal and PACL are examples of schemes that have solicited thousands of crores of rupees from investors looking for ‘big returns’ in a short time. The schemes are usually allied with other ‘promises’ such as a job or property to lure investors.

Tags : UNREGULATED DEPOSITS   PYRAMID SCHEMES    

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved