The Lok Sabha passed the Banning of Unregulated Deposit Schemes Bill, 2019 by voice vote on Wednesday.
The Bill would protect the poorest investor, said Minister of State for Finance and Corporate Affairs Anurag Singh.
The proposed laws would have provisions to combat three different types of offences — running unregulated deposit schemes, fraudulent default in regulated deposit schemes, and wrongful inducement in relation to unregulated deposit schemes.
“The opening of 36 crore bank accounts in Jan Dhan Yojana has linked the poor to our growing economy. There is ₹1 lakh crore in deposits in these accounts,” the Minister said.
Meanwhile, DNV Senthilkumar (DMK, Tamil Nadu) said the government must understand why people were being pushed to opt for these schemes.
“If you look at the demographic that takes part in such schemes, it is always the labourers and the daily-wage earners. Banks impose a high fee on all transactions, including a fine when a person is not able to keep a minimum balance,” Mr. Senthilkumar said.