Banning of unregulated deposit schemes: Here're salient features of new law

The rules under the Act may hold the key to its implementation, say experts

After being unanimously passed by Parliament, the Banning of Unregulated Deposit Schemes Act, 2019 (the Act), got the president’s assent on July 31. Given the extent of unregulated deposits and lending that have been part of the country’s informal economy, this law has been brought to protect the interests of depositors and holding deposit-takers accountable. The government had passed an Ordinance in February to deal with this issue. 

The Act aims to curb unregulated and fraudulent deposit-taking schemes, providing succour to depositors. 

“While the objective is to control deceitful practices carried out through unregulated schemes and chit funds, the implementation