How a new Bill proposes to tighten the noose on ponzi schemes like Saradha

Unregulated deposit collections would be banned altogether, and deemed an offence ex-ante; the existing framework which only kicks in ex-post, with considerable time lags, will be replaced

Busting of the deposit collection schemes run by the Saradha group in 2013 exposed the fault lines of such ponzi schemes. The moot issue was that there is no single regulator for these fund raising activities and many don't figure anywhere in the regulated sphere. 

These activities broadly fall under a complex non-banking financial sector. At present, there are several regulators monitoring acceptance of money from the public. For example, non-banking financial companies (NBFCs) are regulated and supervised by the Reserve Bank of India (RBI) under the provisions of the Reserve Bank of India, 1934 (RBI Act). Chit funds and