The revised Draft “Banning of Unregulated Deposit Schemes and Protection of Depositors’ Interests Bill, 2016” (Version 2.0), has been uploaded on the website of the Department of Financial Services (financialservices.gov.in) on 17^th November, 2016 for public comments. Comments / inputs / suggestions on the Draft Bill, have been invited up to 17^th December 2016.

Earlier, a copy of the “Banning of Unregulated Deposit Schemes and Protection of Depositors’ Interests Bill, 2015”, along with the Report of the Inter-Ministerial Group (IMG) for identifying gaps in the existing regulatory framework for deposit-taking activities and to suggest administrative/ legislative measures including formulation of a new law to cover all relevant aspects of ‘deposit-taking’, was placed on the website of the Department of Financial Services (DFS) in March, 2016 for eliciting public comments.

Based on the comments received and further consultations with the stakeholders, the Draft Bill has been modified which now again has been uploaded on Department of Financial Services website for public comments.

Ban on unregulated deposit schemes proposed, with enhanced depositor protection and public consultation to refine scope and enforcement. The revised draft proposes a statutory framework to prohibit unregulated deposit schemes and enhance protection of depositors' interests, addressing gaps in oversight of deposit taking activities through prohibitory measures, depositor safeguards, and administrative or legislative tools. The draft is the product of prior review including an Inter Ministerial Group report and has been reissued for public consultation to refine scope, definitions, enforcement mechanisms, and institutional roles.