(a) the present status of the Banning of Unregulated Deposit Schemes Bill, 2018;
(b) whether direct selling has been excluded from the ambit of the said Bill, if so, the details thereof;
(c) whether the Government intends to repeal the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 if so, the details thereof; and
(d) the time by which the Bill is likely to come in force?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(a) to (c): The Banning of Unregulated Deposit Schemes Bill, 2018 has been introduced in the Lok Sabha on 18.07.2018. Clause 2(17) of the introduced Bill defines an Unregulated Deposit Scheme as “‘Unregulated Deposit Scheme’ means a Scheme or an arrangement under which deposits are accepted or solicited by any deposit taker by way of business and which is not a Regulated Deposit Scheme”. Clause 3 (a) of the introduced Bill provides that “On and from the date of commencement of the Act, (a) the Unregulated Deposit Schemes shall be banned;…”. Clause 6 of the introduced Bill further provides that “A prize chit or a money circulation scheme banned under the provisions of the Prize Chits and Money Circulation Scheme (Banning) Act, 1978 shall be deemed to be an Unregulated Deposit Scheme under this Act”.
(d): The Bill is yet to be passed by both Houses of the Parliament.
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