Delhi Cracks Down on Unregulated Deposit Schemes

Delhi government bans unapproved deposit schemes with new rules, safeguarding residents from scams. Notified by Lieutenant Governor V K Saxena, the rules permit Self-Help Groups limited deposit collection. Formulated under the 2019 Act, they aim to protect depositors from fraudulent schemes in the national capital.

In a bold move, the Delhi government has announced a ban on unapproved deposit schemes. The regulation, officially notified by Lieutenant Governor V K Saxena, strives to protect residents from fraudulent investment ventures promising high returns.

The newly enacted 'Delhi Banning of Unregulated Deposit Schemes Rules, 2024' aims to close a six-year regulatory gap, safeguarding the savings of hapless citizens from unscrupulous promoters. It includes specific provisions for Self-Help Groups (SHGs), enabling them to operate legally within defined limits.

The initiative follows the Central government's 2019 Act for banning such schemes nationwide. The process involved consultations with the Ministry of Finance and the Reserve Bank of India to ensure comprehensive policies are in place, demonstrating a firm step towards financial safety in the national capital.

(With inputs from agencies.)