The Unregulated Deposits Schemes Bill, 2018: An Overview

1. INTRODUCTION

In March, 2018, the Union Cabinet approved the introduction of the Banning of Unregulated Deposit Schemes Bill, 2018 (the "Bill") and on 18 June, 2018, the Bill was tabled before the Lok Sabha.

The Bill provides for a comprehensive mechanism to tackle the menace of unlawful deposit schemes operating in the country. It was introduced in the wake of recent incidents where a plethora of ponzi type schemes run by fake companies and institutions continue to dupe the general public at large of their hard-earned money.

The Bill has been introduced in the wake of the Sahara and Saradha schemes and many others which have defrauded the public from their savings.

2. KEY FEATURES OF THE BILL