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A ban over unregulated Deposit Scheme

The Cabinet agreed to act upon the official amendments and organise deposit scheme, and those that are not registered under government is considered as an offence.

On any unstructured scheme, there will be a ban over promotion, operation, an issue on advertisement or acceptance of a deposit.

On July 18, 2018, a bill was introduced by the Parliament namely “ Banning of Unregulated Deposit Scheme” that was added to the standing committee who presented their seventieth report on the bill on January 3rd 2019 to Parliament.

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The Cabinet agreed to act upon the official amendments and organise deposit scheme, and those that are not registered under government is considered as an offence.

Earlier in a press release, the government affirmed, “The amendments will further strengthen the Bill in its objective to effectively tackle the menace of illicit deposit-taking activities, and prevent such schemes from duping poor and gullible people of their hard-earned savings.”

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On any unstructured scheme, there will be a ban over promotion, operation, an issue on advertisement or acceptance of a deposit.

The bill was based on the following points:

•    Administering the unregulated deposit scheme.

•    Whether any fraudulent defaulters in deposit scheme.

•    Unwarranted bribe in the unstructured deposit scheme.

The government also claimed that as an act of inhibition, severe punishment and monetary fines would be imposed.

Ravi Shankar Prasad, law minister, announced that offenders would be sentenced jail as well as their assets would be sold off to pay back the debts.

On July 18, 2018, a bill was introduced by the Parliament namely “ Banning of Unregulated Deposit Scheme” that was added to the standing committee who presented their seventieth report on the bill on January 3rd 2019 to Parliament.