The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, today gave approval to Unregulated Deposit Schemes Bill, 2018 that seeks to ban all unregulated deposit schemes including Ponzi schemes and the ones linked to cryptocurrencies.
The bill is aimed at tackling the menace of illicit deposit taking activities in the country, said a Finance Ministry statement.
Companies and 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, the statement said. ALSO READ: Life insurance policy: Know here how much TDS you pay on maturity
Finance Minister Arun Jaitley in his Budget 2018 speech had announced that a comprehensive central legislation would be brought in to deal with the menace of illicit deposit taking schemes, as in the recent past, there have been rising instances of people in various parts of the country being defrauded by illicit deposit taking schemes.
The draft bill to curtail the menace of illicit deposit schemes had been placed in the public domain and would be introduced shortly after its finalisation. NEXT STORY: After Fitch, Moody’s places PNB ratings under review for downgrade Read more from zeebiz.com…
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