Union Finance Minister Arun Jaitley today said that there is an urgent need to protect the poor from chit fund schemes. In his fourth Budget speech, the minister said that the government will amend the Multi-state Cooperative Act to protect the poor and gullible investors from unscrupulous players floating illegal deposit schemes.
"There is an urgent need to protect the poor and gullible investors from another set of dubious schemes, operated by unscrupulous entities who exploit the regulatory gaps in the Multi State Cooperative Societies Act, 2002," he said.
Jaitley said that the government will amend the Act in consultation with various stakeholders, as part of its 'Clean India' agenda. He said the draft bill to curtail the menace of illicit deposit schemes will be introduced in the Parliament shortly after its finalisation.
Besides, series of measures are in pipeline that are part of reforms in the financial sector and to build stable and stronger institutions.
He also said the government will bring in The Financial Resolution and Deposit Insurance Bill, 2016 or the bankruptcy bill for financial firms in the current Budget Session.
"This will contribute to stability and resilience of our financial system. It will also protect the consumers of various financial institutions. Together with the Insolvency and Bankruptcy Code, a resolution mechanism for financial firms will ensure comprehensiveness of the resolution system in our country," Jaitley said.
With more than 90 per cent of the Foreign Direct Investment (FDI) is through automatic route, Jaitley said that the government will abolish the Foreign Investment Promotion Board (FIPB) next fiscal and the road map for the same will be announced soon.
"In the meantime, further liberalisation of FDI policy is under consideration and necessary announcements will be made in due course," he added.
On the reforms to benefit the farmers, he said an expert committee will be constituted to study and promote creation of operational and legal framework to integrate spot market and derivatives market for commodities trading.
With IANS Inputs