Govt to push Banking Bill in Monsoon Session

The Ministry of Finance is gearing up to introduce a host of Bills, including the Banking Regulation (Amendment) Bill, repeal of State Bank of India (Subsidiary Banks) Act, 1959, among others, in the upcoming Monsoon Session.

Besides, it is working on the Banning of Unregulated Deposit Schemes and Protection of Depositors Interests Bill. The Department of Financial Services (DFS) is preparing a draft Bill in this regard and will shortly approach the Cabinet for its nod, a government official said.

The proposed legislation seeks to provide a comprehensive code to ban unregulated deposit schemes and protect interests of depositors.

The Bill stipulates that any deposit taker who promotes and accepts deposits in an unregulated deposit scheme may be punishable with imprisonment for a minimum term of two years, which may be extended to 10 years, and with a fine which may extend to twice the amount of aggregate funds collected from subscribers, members or participants in such schemes or arrangements.

The Monsoon Session of Parliament begins next week on July 17 and closes on August 11.