<p>The Centre is considering decriminalising certain financial sector offences that are currently punishable with a jail term or fine or, both.</p>.<p>This includes offences relating to cheque bounce and repayment of bank loans under the SARFAESI Act. The move is intended to further improve the ease of doing business at a time when the coronavirus outbreak may lead to a lot of financial failures.</p>.<p>Altogether 19 legislations are being considered to be treated as civil offences. These include Negotiable Instruments Act (cheque bounce), Banning of Unregulated Deposit Schemes Act, Insurance Act, LIC Act, PFRDA Act, RBI Act, NHB Act, Banking Regulation Act and Chit Funds Act.</p>.<p>The Ministry of Finance has invited stakeholders suggestions before taking a decision. Based on the feedback, the Department of Financial Services will take a call as to a particular section should remain a criminal offence or that it should be suitably modified to decriminalise to improve ease of doing business.</p>.<p>"Actions taken for decriminalisation of minor offences are expected to go a long way in improving ease of doing business and helping unclog the court system and prisons," the ministry said in a ‘statement of reasons’ inviting comments of stakeholders by June 23.</p>.<p>The ministry has asked state governments, union territory administrations, civil society, non-government organisations, academicians, public and private sector organisations, multilateral institutions and even members of the public to send their views and comments on the issue.</p>.<p>“The risk of imprisonment for actions or omissions that aren't necessarily fraudulent or the outcome of mala fide intent is a big hurdle in attracting investments. The ensuing uncertainty in legal processes and the time taken for resolution in the courts hurt ease of doing business,” the ministry said.</p>.<p>At present, a cheque bounce case is punishable by imprisonment for up to two years or with a monetary penalty or with both. Similarly, the Chit Fund Act prescribes a jail term up to two years with or without fine up to Rs 5,000.</p>.<p>Violation of sections of the RBI Act in seeking deposits without authorisation or avoiding registration leads to imprisonment between 1-5 years with fine as high as Rs 25 lakh.</p>.<p>The other laws which the government seeks to decriminalise our Payment and Settlements Systems Act, NABARD Act, State Financial Corporations Act, Credit Information Companies (Regulation) Act, and Factoring Regulation Act.</p>
<p>The Centre is considering decriminalising certain financial sector offences that are currently punishable with a jail term or fine or, both.</p>.<p>This includes offences relating to cheque bounce and repayment of bank loans under the SARFAESI Act. The move is intended to further improve the ease of doing business at a time when the coronavirus outbreak may lead to a lot of financial failures.</p>.<p>Altogether 19 legislations are being considered to be treated as civil offences. These include Negotiable Instruments Act (cheque bounce), Banning of Unregulated Deposit Schemes Act, Insurance Act, LIC Act, PFRDA Act, RBI Act, NHB Act, Banking Regulation Act and Chit Funds Act.</p>.<p>The Ministry of Finance has invited stakeholders suggestions before taking a decision. Based on the feedback, the Department of Financial Services will take a call as to a particular section should remain a criminal offence or that it should be suitably modified to decriminalise to improve ease of doing business.</p>.<p>"Actions taken for decriminalisation of minor offences are expected to go a long way in improving ease of doing business and helping unclog the court system and prisons," the ministry said in a ‘statement of reasons’ inviting comments of stakeholders by June 23.</p>.<p>The ministry has asked state governments, union territory administrations, civil society, non-government organisations, academicians, public and private sector organisations, multilateral institutions and even members of the public to send their views and comments on the issue.</p>.<p>“The risk of imprisonment for actions or omissions that aren't necessarily fraudulent or the outcome of mala fide intent is a big hurdle in attracting investments. The ensuing uncertainty in legal processes and the time taken for resolution in the courts hurt ease of doing business,” the ministry said.</p>.<p>At present, a cheque bounce case is punishable by imprisonment for up to two years or with a monetary penalty or with both. Similarly, the Chit Fund Act prescribes a jail term up to two years with or without fine up to Rs 5,000.</p>.<p>Violation of sections of the RBI Act in seeking deposits without authorisation or avoiding registration leads to imprisonment between 1-5 years with fine as high as Rs 25 lakh.</p>.<p>The other laws which the government seeks to decriminalise our Payment and Settlements Systems Act, NABARD Act, State Financial Corporations Act, Credit Information Companies (Regulation) Act, and Factoring Regulation Act.</p>
