Banning of Unregulated Deposit Schemes Ordinance 2019

Just a while ago on the 21st of February, 2019, the Government of India took a step to ban unregulated deposits by releasing the “Banning of Unregulated Deposit Schemes Ordinance 2019 . This ordinance has been passed by the Government with the motive to formalize the deposit-taking activities in the country and to protect unaware investors from unregulated deposit schemes or you may also call it Ponzi schemes. This step will keep deposit-taking activities under control and it will also punish unlawful deposit-taking activities. Lok Sabha has given its assent on this bill through a voice vote on the basis of the Cabinet’s request to the President.

So let’s take a closer look of this Ordinance.

Applicability & Objective of the “Banning of Unregulated Deposit Schemes Ordinance 2019”

The ordinance is applicable in the whole of India except Jammu & Kashmir with effect from 21^st February 2019. It has been issued under clause (1) of Article 123 of the Constitution of India. This bill was passed on 13^th February 2019 by the Parliament. This ordinance announced by the President of India as it could not be taken up for consideration in Rajya Sabha. The main objective of this ordinance is to ban unregulated deposits schemes as well as to protect the interest of depositors.