I.
Pradhan
Mantri Jan Dhan Yojana (PMJDY)
With a view to increasing banking
penetration and promoting financial inclusion and with the main objective of
covering all households with at least one bank account per household across the
country, a National Mission on Financial Inclusion named as Pradhan
Mantri Jan Dhan Yojana (PMJDY) was announced by the Prime Minister Shri
Narendra Modi in his Independence Day Speech on 15th August , 2014 .
The Scheme was formally launched by the Prime Minister, Shri Narendra Modi on
28th August, 2014 at National level.
Objectives of PMJDY
(i)
Universal
access to banking facilities for all households across the country through a bank
branch or a fixed point business Correspondent (BC) within a reasonable
distance.
(ii) To cover all
households with atleast one Basic Bank Account with RuPay Debit card
having inbuilt accident insurance cover of Rs.1 lakh.
(iii) An overdraft
facility upto Rs.5000/- after satisfactory operation in the account for 6
months.
(iv) A Life Cover of
Rs.30,000/- to those beneficiaries who open their accounts for the first time
from 15.08.2014 to 31.01.2015.
(v) Financial
literacy programme which aims to take financial literacy upto village level.
(vi) The Mission also
envisages expansion of Direct Benefit Transfer under various Government Schemes
through bank accounts of the beneficiaries.
(vii)
Providing
micro –insurance to the people.
(viii)Un=organised
sector Pension schemes through the Business Correspondents.
Achievements under PMJDY (as on 21st
December,2016)
(i)
26.03
crore accounts have been opened under PMJDY out of which 15.86 crore accounts
are in rural areas and 10.17 crore in urban areas.
(ii) Deposits of Rs.
71,557.90 crore has been mobilized.
(iii) 19.93
crore RuPay Debit cards have been issued under PMJDY.
(iv) Aadhaar
seeding in PMJDY accounts 14.43 crore
(v) Zero balance
accounts has been reduced to 23.86%
(vi) Household
Coverage: 99.99% households out of the 21.22 crore households surveyed have
been covered under PMJDY.
As on 23rd
December, 2016,
out of total requirement of 1,27,198 fixed location Bank Mitras in Sub Service
Areas (SSAs), 1,26,985 Bank Mitras have been deployed by banks.
Overdraft (OD) in PMJDY accounts
As on 23rd
December, 2016, 44.28 lakh accounts have been sanctioned OD facility of
which 23.85 lakh account-holders have availed this
facility involving an amount of Rs.316.56 crore.
Insurance Claims settled
(i)
As
on 23rd December, 2016, out of 1712 claims lodged, 1626 claims have
been disposed off under accidental insurance cover of Rs. 1 lakh under RuPay
debit card .
(ii) As on 23rd
December, 2016, out of 3936 claim lodged, 3421 claims paid under Life
Cover of Rs.30,000/- to those beneficiaries who opened their accounts for the
first time from 15.08.2014 to 31.01.2015.
II
Jan Dhan to Jan Suraksha
For creating a universal social Security
system for all Indians, especially the poor and the under-privileged by the
Prime Minister Shri Narendra Modi launched three Social Security Schemes in the
Insurance and Pension sectors; namely the Pradhan Mantri Suraksha Bima Yojna,
the Pradhan Mantri Jeevan Jyoti Bima Yojana and the Atal Pension Yojana on Pan
India basis on the 9th of May, 2015. Salient features of the two schemes
related to Insurance are given below:
Pradhan Mantri Jeevan Jyoti Bima Yojana
(PMJJBY)
The PMJJBY is available to people in the
age group of 18 to 50 years having a bank account who give their consent to
join / enable auto-debit. Aadhar would be the primary KYC for the bank account.
The life cover of Rs. 2 lakhs shall be for the one year period stretching from
1st June to 31st May and will be renewable. Risk
coverage under this scheme is for Rs. 2 Lakh in case of death of the insured,
due to any reason. The premium is Rs. 330 per annum which is to be auto-debited
in one installment from the subscriber’s bank account as per the option given
by him on or before 31st May of each annual coverage period under
the scheme. The scheme is being offered by Life Insurance Corporation and all
other life insurers who are willing to offer the product on similar terms with
necessary approvals and tie up with banks for this purpose.
By 28th December, 2016,
Cumulative Gross enrolment reported by Banks, subject to verification of
eligibility, etc. is over 3.08 crore under PMJJBY. 51,745 claims were
registered under PMJJBY till 28thDecember, 2016 out of which 48,023 have been
disbursed.
Pradhan Mantri Suraksha BimaYojana
(PMSBY)
The Scheme is
available to people in the age group 18 to 70 years with a bank account who
give their consent to join / enable auto-debit on or before 31st May
for the coverage period 1st June to 31st May on an annual
renewal basis. Aadhar would be the primary KYC for the bank account. The risk
coverage under the scheme is Rs. 2 lakh for accidental death and full
disability and Rs. 1 lakh for partial disability. The premium of Rs. 12 per
annum is to be deducted from the account holder’s bank account through
‘auto-debit’ facility in one installment. The scheme is being offered by Public
Sector General Insurance Companies or any other General Insurance Company who
are willing to offer the product on similar terms with necessary approvals and
tie up with banks for this purpose.
By 28thDecember, 2016,
Cumulative Gross enrolment reported by Banks subject to verification of
eligibility, etc. is over 9.88 Crore under PMSBY. 10084 Claims were registered
under PMSBY till 28thDecember, 2016 out of which 7282 have been
disbursed.
Atal
Pension Yojana (APY)
(i)
APY
was launched on 9th May, 2015 by the Prime Minister Shri Narendra
Modi.
(ii) APY is open to
all bank account holders in the age group of 18 to 40 years and the
contributions differ, based on pension amount chosen.
(iii) Subscribers
would receive the guaranteed minimum monthly pension of Rs. 1000 or Rs. 2000 or
Rs. 3000 or Rs. 4000 or Rs. 5000 at the age of 60 years.
(iv) Under APY, the
monthly pension would be available to the subscriber, and after him to his
spouse and after their death, the pension corpus, as accumulated at age 60 of
the subscriber, would be returned to the nominee of the subscriber.
(v) The minimum
pension would be guaranteed by the Government, i.e., if the accumulated corpus
based on contributions earns a lower than estimated return on investment and is
inadequate to provide the minimum guaranteed pension, the Central Government
would fund such inadequacy. Alternatively, if the returns on investment are
higher, the subscribers would get enhanced pensionary benefits.
(vi) The Central
Government would also co-contribute 50% of the total contribution or Rs. 1000 per
annum, whichever is lower, for a period of 5 years for those eligible
subscribers joining the scheme between the period 1st June, 2015 and
31st March, 2016 and who are not members of any statutory social
security scheme and who are not income-tax payers.
Some
recent revisions in APY
In the event of premature death of the
subscriber, Government has decided to give an option to the spouse of the
subscriber to continue contributing to APY account of the subscriber, for the
remaining vesting period, till the original subscriber would have attained the
age of 60. The earlier provision was to over lump sum amount to spouse on the
premature death (death before 60 years of age) of the subscriber. The spouse of
the subscriber shall be entitled to receive the same pension amount as that of
the subscriber until the death of the spouse. After the death of both the
subscriber and the spouse, the nominee of the subscriber shall be entitled to
receive the pension wealth, as accumulated till age 60 of the subscriber.
Progress
under APY
As on 27th December, 2016, a total of 38.23 lakh subscribers have
been enrolled under APY with a total pension wealth of Rs. 1344.70 crore. Out
of the total subscribers, 19.74 lakh subscribers have been enrolled during the
calender year 2016 (up to 15th December, 2016).
III.
Pradhan Mantri Mudra Yojana (PMMY)
The Prime Minister
Shri Narendra Modi launched Pradhan Mantri Mudra Yojana (PMMY) on April 08,
2015 to provide formal access of financial facilities to Non –Corporate
Small Business Sector (NCSBS). All loans sanctioned on or after
April 08, 2015 upto a loan size of Rs.10 lakh for non-farm income
generating activities will be branded as PMMY loans.
Objective: To
promote & ensure bank finance to unfunded segments of the economy.
Target Clients
Non–Corporate Small Business
Segment (NCSB) comprising of proprietorship / partnership firms running as
small manufacturing units, service sector units, shopkeepers, fruits /
vegetable vendors, truck operators, food-service units, repair shops, machine
operators, small industries, artisans, food processors and others, in rural and
urban areas.
Schemes under PMMY
|
Scheme
|
Amount of Loan
|
|
Shishu
|
Up to Rs.50000/-
|
|
Kishore
|
Above Rs.50000/- and up to Rs. 5 Lakh
|
|
Tarun
|
Above Rs. 5 lakh and up to Rs.10 lakh
|
Features of MUDRA Loans
under PMMY
i.
Borrowers can avail loan facility from any Public/Private/
Regional Rural Banks, NBFCs and MFIs.
ii.
No processing fee for loans up to Rs.50000/- (SHISHU category).
iii.
Banks have been mandated by RBI not to insist for collateral
security in the case of loans upto 10 lakh extended to the units in the Micro
Small Enterprises sector.
iv.
‘Activities allied to agriculture’ , e.g. pisciculture ,
beekeeping, poultry , livestock , rearing , grading, sorting ,
aggregation agro industries, diary, fishery, agriclinics and agribusiness
centers, food & agro-processing, etc (excluding crop loans, land
improvement such as canals, irrigation, wells ) and services supporting these,
which promote livelihood or are income generating , have been included under
PMMY from April, 2016 onwards.
v.
As per RBI circular no DBOD. No. Dir. BC 88
/13.03.00/2009-10 dated 9th April,2010, all credit
related matters of banks including charging of interest (ROI) have been
deregulated by RBI and are governed by the banks’ own lending policies.
Eligibility
Any citizen, who is
otherwise eligible to take loan and has a business plan for a small business
enterprise, can avail MUDRA loan upto Rs.10 lakh. The borrower need
to approach the nearest bank branch and submit the loan application, in the
prescribed format along with the required supporting documents for availing of
the loan.
Performance
as on 9th December, 2016
Disbursement
amount – Rs.77,916.54 crore
No.
of Borrowers – 2.12 crore
No.
of Women entrepreneurs – 1.68 crore
IV.
Stand-Up
India Scheme
The Stand-Up India Scheme was launched
by the Prime Minister Shri Narendra Modi on 5th April, 2016. The
scheme envisages extending bank loans between Rs. 10 lakh to Rs. 1 crore for
Greenfield Enterprises set-up by SC, ST and Women entrepreneurs and extending
effective handholding support to them. Each bank branch is to extend loans to
at least one SC/ST and one woman entrepreneur. Enterprises covered under the
scheme may be in manufacturing, services or the trading sector. The Scheme
shall be implemented through 1.25 lakh bank branches of all Scheduled
Commercial Banks. The loan shall be a composite loan to meet the requirement of
fixed assets and working capital with rate of interest being the lowest
applicable rate of the bank for that category as per rating. Provision of
convergence with State/ Central Government Schemes has been identified in the
Scheme. Credit Guarantee Fund Scheme for Stand-Up India (CGFSI) is operational
with a corpus fund of Rs.5,000 crore. A dedicated portal (www.standupmitra.in) for the Stand-Up India Scheme is
active. The portal as a virtual market place endeavors to provide ‘End to End’
solutions not only for credit delivery but also for a host of handholding
services. As on 23.12.2016, total number of loans sanctioned under Stand Up
India Scheme is 15341 [Women: 12055, SC: 2568 and ST: 718].
V.
education Loan Scheme
The Education Loan Scheme (ELS) formulated by Indian Banks’
Association aims to provide financial support from the banking system to
deserving/ meritorious students for pursuing higher education in India and
abroad. The main eMphasis is that every meritorious student though poor is
provided with an opportunity to pursue education, with the financial support
from the banking system, on affordable terms and conditions, and, that no
deserving student is denied an opportunity to pursue higher education for want
of financial support. Model Educational Loan
Scheme was prepared by Indian Banks’ Association (IBA) in the year 2001 which
was circulated to banks for implementation by Reserve Bank Of India in April,
2001. Keeping in view the needs of the students and suggestions from
stakeholders the Model Educational Loan Scheme was revised by IBA in August,
2015.
Achievements
The outstanding Educational Loan Portfolio of Public sector
Banks has increased from Rs. 61, 967 crore as on 31st March,
2015 to Rs. 65,644 crore in as on 31st March, 2016
and further to Rs 68,783 crore on 30th September, 2016.
Vidya Lakshmi Portal
Vidya Lakshmi Portal (VLP) (www.vidyalakshmi.co.in) was
launched on August 15, 2015. The portal has been developed and is being
maintained by NSDL e-Governance Infrastructure Limited. Students can view,
apply and track the education loan applications made to banks anytime, anywhere
by accessing the portal.
Twenty seven PSBs, 6 Private
Sector Banks and two co-operative Bank have integrated their system with the
Vidya Lakshmi Portal for submitting on-line loan applications and for providing
loan processing status to students. This initiative aims to bring on board all
Banks providing Educational Loans. The portal covers 64 educational loan
schemes of different banks.
VI.
BIFR/AAIFR
The Gazette notifications regarding
bringing into force the Sick Industrial Companies (Special Provisions)
Repeal Act, 2003 under section 1 (2) of the Act and provisions regarding
abetment of cases with BIFR/AAIFR under section 4(b) of the Act have been
issued vide Government Notification S.O. No 3568 (E) dated 25.11.2016 and S.O.
3569 (E) dated 25.11.2016. Both the notifications come into force with effect
from 01.12.2016 resulting into winding up of BIFR and AAIFR and abetment of
cases.
VII.
Agriculture
Credit
(i)
The
Government of India has been setting an annual target for the flow of credit to
the Agriculture sector, which has been surpassed by banks over the years.
(ii) As against the
Annual Target of Rs.8,50,000 crore for 2015-16, agriculture credit was
disbursed to the tune of Rs.8,77,527.05crore during 2015-16, registering
103.24% achievement.
(iii) The
Government has fixed the annual target for flow of agriculture credit during
2016-17 at Rs.9,00,000 crore. Up to the Quarter ending 30.09.2016 during the
Current Financial Year 2016-17, Agriculture Credit amounting to Rs.7,55,995.16
crore (provisional figure) has been disbursed,
registering about 84% achievement of the annual target.
VIII.
Long Term Rural Credit Fund (LTRCF)
The Government has prioritized lending towards investments in
agriculture and allied sector to enhance capital formation in
agriculture. Accordingly, the GoI has allocated additional resources
of Rs.15,000crorefor 2016-17 to the Long Term Rural Credit Fund (LTRCF) set up
in NABARD, which is met out of the shortfall in Priority Sector Lending (PSL)
targets. The Cooperative Banks/RRBs are, therefore, able to draw
much higher refinance support from NABARD for financing medium and long term
agricultural loans during 2016-17.
IX.
The
Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous
Provisions (Amendment) Act, 2016
(i) The Securitisation
and Reconstruction of Financial Assets and Enforcement of Security Interest
Act, 2002 (SARFAESI Act) and the Recovery of Debts Due to Banks and Financial
Institutions Act (RDDB & FI Act) have been amended for speedier resolution
of defaulted loans through ‘The Enforcement of Security Interest and Recovery
of Debts Laws and Miscellaneous Provisions (Amendment) Act, 2016 (44 of 2016)
and it was notified in the Gazette on 16th August, 2016. Many provisions of the
Amendment Act (44 of 2016) have been brought into force through notifications
dated 1st September 2016 and 4th November 2016.
(ii) Important
provisions of Amendment Act which will help DRTs in faster disposal of cases
include enabling reappointment of Chairpersons, DRATs and Presiding Officers,
DRTs, minimising the number of adjournments in DRTs, introduction of electronic
filing system in DRTs, power to prescribe the number of days in rules for each
adjournment and days for filing written statements etc by Government, etc.
X. New Initiatives,
Achievement and others:
(i) The banks have
already provided the mobile banking services like Immediate Payment Service
(IMPS) and products like Unstructured Supplementary Service Data (USSD) and
Unified Payment Interface (UPI) etc. for facilitating transfer of funds for the
customers and thereby facilitating moving towards cashless system.
(ii)
Bharat
Bill Payment System has also been introduced to facilitate interoperable bill
payments in the country thus enabling greater adoption of electronic payments.
(iii) Scheduled
Commercial Banks have taken various initiatives for expanding card acceptance
infrastructure to Semi-urban and Rural areas to provide cashless transaction
system.
(iv) Banks have
organized special camps across the country to open new accounts. There
are 64.50 lakh new accounts have been opened in 4.52 lac camps between
26.11.2016 to 27.12.2016.
(v)
In
order to provide banking facilities in all unbanked rural areas, banks have
deployed Bank Mitras. As on 23rd December, 2016,
total 1,26,985 Bank Mitras have been deployed in rural areas across the
country.
(vi) The Government
has advised banks to deploy micro ATMs in rural areas in all Sub Service Areas
(SSAs) across the country. There are 114518 micro ATMs that have
been deployed as on 23rd December, 2016.
(vii) The
Cabinet on 13th October 2016 has approved this Department’s proposal
for signing of Memorandum of Understanding (MoU) on General Cooperation with
the New Development Bank (NDB) through the BRICS Interbank Co-operation
Mechanism. The MoU between the participating members of BRICS Interbank
cooperation Mechanism and NDB was signed on 15th Oct, 2016.
(viii)
The
Union Cabinet at its meeting held on April, 2016 has approved enhancement
of the amount upto Rs. 3,000 crore of Buyer’s Credit facility to Iran
under the Export Development Fund (EDF) to cover the contracts for import of
steel rails from India and Development of Chabahar Port Project, thereafter,
enhanced as above and signed on May, 4, 2016 between EDF and seven Iranian
Banks for an amount of Rs 3,000 crore.
(ix) With a view to improve the Governance of Public Sector Banks
(PSBs), the Government had decided to set-up an Autonomous Banks Board Bureau
(BBB). The Bureau will recommend for selection of heads of Public Sector Banks
and Financial Institutions and help Banks in developing strategies and capital
raising plans. Now, the Government has announced the constitution of Banks
Board Bureau which will have three ex-officio members and three expert members
in addition to Chairman. Except ex-officio members, all the Members and
Chairman will be part time. The BBB, which has started functioning from April
01, 2016.
(x)
A top level Bankers retreat namely “Gyan Sangam 2.0” was organized
at State Bank Academy, Gurgaon on 4-5 March, 2016. The main purpose of
organizing this event was to give an opportunity to Chairman & Managing
Directors (CMDs)/Managing Director & Chief Executive Officers (MD&CEOs)
and Executive Directors (EDs) of all the banks to express their opinion about
what went wrong and what could be done to improve the situation. The
main focus was on Restructuring/M & A, NPA management & Recovery,
technology & Digital, Credit Growth and risk management.
(xi) To implement the
reforms in Banking, Government has decided to separate the post of Chairman
& Managing Director in Chairman (Non-executive) and Managing Director &
CEO. Accordingly, the Government with the approval of Cabinet Committee of
Appointments (ACC) has recently appointed five Non-Executive Chairmen in the
Public Sector Banks, namely, Bank of Baroda, Bank of India, Canara Bank, Indian
Bank and Vijaya Bank.
(xii) The Government has
also decided to open the selection process for the candidates belonging to
Private sector in five bigger Public Sector Banks namely Bank of Baroda, Bank
of India, Punjab National Bank, Canara Bank and IDBI Bank Ltd. Accordingly,
guidelines have been revised with the approval of ACC and based on new
guidelines, appointment of MD & CEOs in five big Public Sector Banks,
namely, Bank of Baroda, Bank of India, Canara Bank, Punjab National Bank and
IDBI Bank Ltd. has been notified. Out of 5 MD&CEO, two are from
Private Sector.
(xiii) An Executive Foreign
Tour Portal has been launched on January 01,.2016 to keep the record regarding
overseas visits updated in the portal. The portal is simply designed
on which a Whole Time Director will upload details regarding foreign visits
before proceeding on such visit.
(xiv) Preferential Allotment:- Approval
granted to 12 proposals of PSBs to raise a sum of Rs. 2914.038 crore
through preferential allotment.
(xv) QIP:- Permission given to raise Rs. 200 crore by
United Bank of India through QIP mode.
(xvi) Advisories issued to PSBs:- Advisory issued to all PSBs to
implement Cyber security measures to avoid fraudulent transactions and for strengthening their IT Security to avoid cyber breach. They
were advised to intimate Indian
Computer Emergency Response Team (CERT-IN) about
any cyber security breach related incident, within 2 to 6 hours of the
occurrence of the incidence. All PSBs are requested
to nominate adequate Bank Counsels in all Courts including the Hon’ble High
Court of Delhi.
(xvii) Fulfillment
of Pending Assurances:- 13 Pending Assurances are fulfilled during January to
December 2016.
(xviii) Matters related to Parliamentary
Standing Committee:- Comments on 6 subjects pertaining to Parliamentary
Committee have been furnished during January to December 2016.
(xix) Laying
of Annual and Consolidated Report of PSBs in Parliament:- Annual
Report of all PSBs and Consolidated Report of PSBs received from RBI have been laid
on the table of both the Houses of Parliament.
(xx) Advisories
issued on Bank Notes to Indian Bank’s Association (IBA) :- Member banks
of IBA were advised to strict compliance with original IDs for bank transactions
and to put a display board communicating consequences of using fake IDs. They were
advised to form a separate queue for farmers in bank branches, special cash
dispensations in the tea gardens and to provide currency to the District
Central Co-operative Bank as per requirement. They were advised to watch out
for unusual transactions and any suspicious transaction be reported to the
Financial Intelligence Unit of Department of Revenue. They were also advised to
consider delegation of Cheque Printing Books and its Dispatch (CPD) to their
Local Offices in order to speed- up the process of availability of cheques. A
D.O. letter from the Secretary (Revenue) regarding PAN reporting requirements
was forwarded to IBA with a request to advise banks accordingly.
XI.
capitalization
of Public Sector Banks (PSBs)
As
of now, the PSBs are adequately capitalized and meeting all the Basel III and
RBI norms. However, the Government of India wants to adequately
capitalize all the banks to keep a safe buffer over and above the minimum norms
of Basel III. Therefore, Government has estimated how much capital will
be required this year and in the next three years till FY 2019. If the
internal generated profit is excluded which is going to be available to
PSBs (based on the estimate of average profit of the last three years), the
capital requirement of extra capital for the next four years up to FY
2019 is likely to be about Rs.1,80,000 crore. This estimate is based
on credit growth rate of 12% for the current year and 12 to 15% for the next
three years depending on the size of the bank and their growth ability.
It is also presumed that the emphasis on PSBs financing will reduce over the years
by development of vibrant corporate debt market and by greater participation of
Private Sector Banks.
Out
of the total requirement, the Government of India proposes to make available
Rs.70,000 crore out of Budgetary Allocations for four years as per the figures
given below:
|
(i)
|
Financial Year 2015 -16
|
–
|
Rs. 25,000 crore
|
|
(ii)
|
Financial Year 2016-17
|
–
|
Rs. 25,000 crore
|
|
(iii)
|
Financial Year 2017-18
|
–
|
Rs. 10,000 crore
|
|
(iv)
|
Financial Year 2018-19
|
–
|
Rs. 10,000 crore
|
|
|
Total
|
–
|
Rs. 70,000 crore
|
The
Government had already infused a sum of Rs. 25,000 crore in 19 PSBs during the
financial year 2015-16. A budgetary provision of Rs. 25,000 crore has been made
for the year 2016-17 and the Government has already allocated Rs. 22,915 crore
to 13 PSBs on 19th July, 2016 of which 75% has been allocated in
first trench while remaining amount will be released on assessment of
performance of PSBs based on their results on the Quarter ending in December.
XII.
Acquisition
of Subsidiary banks of SBI, i.e. State Bank of Bikaner and Jaipur, State Bank
of Hyderabad, State Bank of Mysore, State Bank of Patiala, State Bank of
Travancore, and Bhartiya Mahila Bank Ltd. By State Bank of India.
The Cabinet in
its meeting held on 15th June 2016 has approved the proposal of
acquisition of assets and liabilities of subsidiary banks i.e. State Bank of
Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank
of Patiala, State Bank of Travancore and Bhartiya Mahila Bank (BMB).
XIII.
The “Banning of unregulated Deposit Schemes and Protection of
Depositors’ Interests Bill, 2016” (Version 2.0)
(i)
Government
proposes to bring in a comprehensive Central legislation to deal with the
menace of illicit deposit taking schemes. The Government had earlier
constituted an Inter-Ministerial Group (IMG) for identifying gaps in the
existing regulatory framework for deposit-taking activities and to suggest
administrative/ legislative measures, including formulation of a new law, to
cover all relevant aspects of ‘deposit-taking’. The IMG had finalised its
Report and recommended a number of legislative and non-legislative/
administrative measures. The IMG’s legislative recommendations
included the enactment of a new Central legislation called the Banning of
Unregulated Deposit Schemes and Protection of Depositors’ Interests Bill
(“Banning Bill”) in order to tackle the menace of illicit deposit taking
schemes.
(ii)
A
copy of the “Banning of Unregulated Deposit Schemes
and Protection of Depositors’ Interests Bill,
2015”, along with the Report of the Inter-Ministerial Group
(IMG) was placed on the website of the Department of
Financial Services (DFS) in March, 2016 for eliciting public comments.
Based on the comments received on the Draft Bill and further consultation with
stakeholders, the Draft Bill has been modified. The revised Draft legislation,
titled the “Banning of Unregulated Deposit Schemes and Protection of
Depositors’ Interests Bill, 2016” (Version 2.0), has been
uploaded on the website of the Department of Financial Services on 17th
November, 2016 seeking comments from the public on the Draft Bill to reach on
or before 17th December, 2016.
(iii) The Banning
Bill seeks to bring out a clear demarcation between regulated and unregulated
deposit schemes, comprehensively define deposit takers, and provide strong
penal provisions for different offences.
*****
DSM/MS/AK/KA
