The Punjab Cabinet today approved the introduction of a fresh Bill in the Vidhan Sabha to protect the interests of depositors against default.
The Cabinet, in its meeting chaired by Chief Minister Amarinder Singh, decided to withdraw the Punjab Protection of Interests of Depositors (in Financial Establishments) Bill, 2015, which was earlier sent to the Centre for obtaining the assent of the president and was pending with the Ministry of Home Affairs, an official spokesman said.
The decision comes in the wake of mushrooming of fraudulent financial establishments in the state in the recent past, the spokesman said.
The move follows serious complaints received by the state government, the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) against many financial establishments allegedly indulging in unscrupulous activities to fleece innocent depositors, he said.
These establishments are found to be making impracticable or commercially unviable promises or by offering highly attractive rates of interest or rewards, with no intention of fulfilling their obligation of refunding the deposits on maturity or rendering proper services assured to the investors at the time of accepting the deposits.
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