Unregulated Deposit Schemes in India: A Critical Examination of Legal and Institutional Responses

Author(s)	Dr. Dushyant Kumar, Mr. Aditya Pratap Singh
Country	India
Abstract	Unregulated deposit schemes pose a significant threat to India’s financial stability and investor protection framework by exploiting regulatory gaps and low financial literacy, particularly in rural and semi-urban areas. This paper critically examines the legal and institutional responses to such schemes, with a focus on the effectiveness of existing laws, including the Banning of Unregulated Deposit Schemes Act, 2019. It analyzes the roles of key regulatory authorities and highlights challenges such as jurisdictional overlaps, technological complexities, and enforcement limitations. The study further evaluates judicial interventions and draws comparative insights from international regulatory practices. It concludes that while India has made substantial legislative progress, a coordinated approach involving legal reforms, institutional efficiency, technological integration, and enhanced investor awareness is essential to effectively combat unregulated deposit schemes and ensure robust depositor protection.
Keywords	Unregulated Deposit Schemes, Investor Protection, Financial Regulation, BUDS Act, 2019, Regulatory Authorities.
Published In	Volume 8, Issue 2, March-April 2026
Published On	2026-04-06

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