SC: No Remand if the Appellate Court Can Decide the Issue on Existing Evidence  ||  SC: S.69 Evidence Act Applies to Will Only if S.68 Attestation Proof is Impossible  ||  SC: Superior’s Mere Reprimand Not Abetment of Suicide without Intent to Provoke Death  ||  SC: Speedy Trial is Victim’s Right; Gangsters Act Case Cannot Stall Other Trials  ||  Supreme Court Issues Directions to Curb Unaccounted Cash in Elections to Protect Democracy  ||  Supreme Court Issues Directions to Prevent Fake Sureties in Bail Cases Involving Foreigners  ||  Madras HC: Police Cannot Arbitrarily Bar Carrying Indian Flag at Peaceful Rallies  ||  Delhi HC Bars JNU from Granting Student Admissions Using Deprivation Points  ||  Kerala High Court Flags Misuse of POCSO in Marital Disputes and Acquits Man Accused of Rape  ||  Calcutta HC orders Urgent EWS Certificate Decision, Says Mother's Voter Deletion Irrelevant    

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