1. Deposit schemes like Ponzi and fake deposit schemes or schemes not registered under government are unregulated deposit schemes.
2. President Ram Nath Kovind promulgated the 'Banning of Unregulated Deposit Schemes Ordinance 2019'.
3. This ordinance states that any deposit scheme not registered with the government would be treated as an unregulated deposit scheme and would, as such, be banned.
4. This extends to the entire country except Jammu and Kashmir and is to come into force immediately.
5. The ordinance has also put in place a mechanism that will penalise the operation and advertisement of such unregulated schemes with jail time as well as monetary fines.
source: https://www.thehindu.com/business/Industry/centre-bans-ponzi-schemes/article26358251.ece
Vocabs:
affluent: wealthy
promulgate: promote
