L-G Saxena approves banning of unregulated deposit schemes in Delhi

New Delhi: The schemes operating without approval of the regulatory authorities will be banned in Delhi under the new rules notified by the government, the Raj Niwas said on Monday.

The move is aimed at protecting the residents from being duped by fraudulent deposit schemes that promise high returns.

Lieutenant Governor V K Saxena has approved the notification of "The Delhi Banning of Unregulated Deposit Schemes Rules, 2024", which had been delayed by almost six years.

“The notification of the rules will ensure that fraudulent schemes are not used by the criminals to dupe hapless residents of their savings,” the L-G’s office said in a statement.

The rules, formulated under Section 38 of the Banning of Unregulated Deposit Schemes Act, 2019, include special provisions for Self-Help Groups (SHGs), allowing them to operate within prescribed limits.

Based on recommendations from the Women and Child Development Department, SHGs can collect deposits up to Rs 50,000 per month with an annual ceiling of Rs 5 lakh.

The Central government enacted the 2019 Act to prohibit unregulated deposit schemes and protect the depositors.

The Centre had urged the Delhi government in 2020 to draft and notify rules, drawing on frameworks like those of Karnataka, according to the Raj Niwas.

After consultations with the Ministry of Finance, Reserve Bank of India and other stakeholders, these rules have now been finalised and notified in the national capital, the statement added.