Rajya Sabha passes bill to ban Ponzi-like schemes, protects investors

NEW DELHI: Rajya Sabha on Monday unanimously passed the Banning of Unregulated Deposit Schemes Bill, 2019, which is meant to check proliferation of Ponzi schemes and protect investments made by the poor.
In his reply to the debate, minister of state for finance Anurag Thakur said the bill would protect the hard earned money of poor people. Lok Sabha had passed the bill on July 24.
The minister said the government had constituted an inter-ministerial group to address gaps in existing legislation. The recommendations include a new central law to tackle unregulated deposit schemes. He said the bill was part of the government's effort to bring back money looted by powerful people.
The bill seeks to provide a comprehensive mechanism to ban unregulated deposit schemes, other than deposits taken in the ordinary course of business, and to protect the interest of depositors.
It also seeks to ensure that no hardship is caused to genuine businesses, or to individuals borrowing money from their relatives or friends for personal reasons or to tide over a crisis. According to the bill, no deposit taker shall directly or indirectly promote, operate or advertise an unregulated deposit scheme.
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References

1. ^{^} Rajya Sabha (timesofindia.indiatimes.com)
2. ^{^} Anurag Thakur (timesofindia.indiatimes.com)
3. ^{^} Lok Sabha (timesofindia.indiatimes.com)
4. ^{^} unregulated deposit scheme (timesofindia.indiatimes.com)

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