Favoring small depositor’s interest, all in unison, back to ban unregulated deposit schemes

Cutting across the party lines and scarcely getting all in unison, the members in the Rajya Sabha on Monday supported a bill that seeks to regulate unregulated deposit schemes in the country and protect the money of poor depositors.

MoS Finance Anurag Thakur moved the bill for discussion in the Upper House and members from various parties welcomed it, offering suggestions. Participating in the debate, Suresh Prabhu said that the bill was comprehensive which was a necessity for the economy as it would help mobilise savings in regulated environAment.

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Noting a big challenge before the country to look at ways to mobilise savings, the BJP leader said, “China has 50 per cent saving rate in a USD 12.4 trillion economy. It has USD 6.2 trillion savings that could be brought back into investment. We have to increase our savings rate”.

Savings can be improved if there are intermediaries like NBFCs. But intermediaries need to be regulated. And also, there should be a fine trade off between those who mobilise deposit and protect the interest of depositors, he added

Meanwhile CPI-M leader Elamaram Karim, moved a resolution opposing the ordinance route taken by the government to bring this bill just before Lok Sabha polls. Asserting that he does not question the merit of the bill, Karim said it was not a good practice to bypass Parliamentary procedure and bring an ordinance. Every bill should be debated in Parliament.

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However, AITC member Derek O Brien supported the bill, saying that this was the first bill brought for passage in the House after being scrutinised by a parliamentary panel. “The Banning of Unregulated Deposit Scheme Bill, 2019 has already been passed in the Lok Sabha”, he said.

Favouring to protect the small depositors, T Subbarami Reddy of the Cong party also supported the bill stressing that the poor should be protected from unregulated deposit schemes and norms should be made more stringent.

“Currently, the Non-Banking Finance Companies are in a bad shape because of 2 to 3 unscrupulous companies and the government should take steps to address the problems”, he said, lauding the Finance Minister for bringing this bill that will help safeguard interests of people, especially the poor, as there is no law to regulate such ponzi schemes.

Thakur, in the Upper House, called for a regulatory mechanism and collection of data by the Finance Ministry and stated on how much money was being taken through such deposit schemes. He said there was no authentic study to measure how much poor people were investing in these schemes.


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