Union Cabinet on Wednesday approved the banning of Unregulated Deposits Schemes Bill, 2019 to tackle the menace of illicit deposit taking activities in the country.
Announcing the Cabinet decisions, Union Minister Prakash Javadekar told reporters that the Bill will replace the Banning of Unregulated Deposit Schemes Ordinance, 2019.
He said the Bill will help tackle the menace of illicit deposit taking activities in the country, which at present are exploiting regulatory gaps and lack of strict administrative measures to dupe poor and gullible people of their hard-earned savings.
The Bill will replace the ordinance promulgated on February 21, 2019 which will otherwise cease to operate after six weeks following the re-assembly of Parliament.
The Bill would have adequate provisions for punishment and disgorgement or repayment of deposits in cases where such schemes nonetheless manage to raise deposit illegally.
The meeting of the Union Cabinet was chaired by Prime Minister Narendra Modi.
