NEW DELHI: in a move aimed at protecting gullible small-time depositors from phoney chit funds, the Centre on Wednesday approved amendments to the Banning of Unregulated Deposit Scheme Bill, 2018. The changes include severe punishment and heavy fines for unregulated deposit takers.
The amendments suggest a total ban on deposit takers from promoting, operating, issuing advertisements or accepting deposits in any unregulated deposit scheme.
The Bill also has provisions to attach promoters’ properties and use the money to repay depositors.
The Bill was introduced in Parliament on July 18, 2018 and was referred to the Standing Committee on Finance, which submitted its report to Parliament on January 3 this year.