The Union Cabinet on Wednesday approved Banning of Unregulated Deposit Schemes Bill with an aim to tackle the menace of illicit deposit-taking activities in the country.Also Read - Breaking: Centre Extends PM Garib Kalyan Anna Yojana to Provide Free Ration Till March 2022

The bill will replace the Banning of Unregulated Deposit Schemes Ordinance, 2019. Also Read - Govt Clears Rs 25,938 Crore New PLI Scheme For Auto Sector, To Benefit Electric Vehicles, Hydrogen Fuel Cell Vehicles

The proposed legislation is likely to be introduced in Parliament during the ongoing session. Also Read - 7th pay Commission: Good News For Central Govt Employees, Union Cabinet Finally Hikes Dearness Allowance For Them to 28%

Talking to reporters after the Cabinet meeting, Information and Broadcasting Minister Prakash Javadekar said people are suffering due to chit fund scams.

“The bill will help tackle the menace of illicit deposit-taking activities in the country, which at present are exploiting regulatory gaps and lack of strict administrative measures to dupe poor and gullible people of their hard earned money,” an official release said.

The proposed legislation will have adequate provisions for punishment and disgorgement/repayment of deposits in cases where such schemes nonetheless manage to raise deposits illegally, it added.

The banning of Unregulated Deposit Scheme Bill, 2018 was considered by the Lok Sabha in February and after discussion, the same was passed.

However, before the same could be considered and passed in the Rajya Sabha, the Rajya Sabha was adjourned sine die on the same day.