Working With MeitY And RBI; FM On Ponzi Apps Cautioning investors against ponzi apps, Sitharaman said investors should do their due diligence and should not be lured by claims of lucrative returns made by them

By Teena Jose

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Union Minister Nirmala Sitharaman on Sunday said the finance ministry is working with MeitY and RBI to clamp down on ponzi apps to prevent them from taking away hard earned money of gullible investors, according to a PTI report.

Cautioning investors against ponzi apps, Sitharaman said investors should do their due diligence and should not be lured by claims of lucrative returns made by them.

"There are also apps which are coming out and reaching out to people saying we can do this, we can do that. Your money will fetch you this much. Many of them are ponzi, the apps on which we are working with the Ministry concerned, the ministry of electronics and information technology (MeitY) and with the Reserve Bank and clamping down on them like never before, so that we don't get those ponzi apps, taking away hard earned money," said Sitharaman in a statement.

During an interaction in Thinkers Forum, Sitharaman also highlighted that social influencers and financial influencers are all out there but a strong sense of caution is required in each one of us to make sure we do double checking, counter checking, don't go as a flock into something and therefore protect hard-earned money.

Being asked on regulating social influencers and financial influencers, she reportedly clarified that, "I'm not having any proposal before me for regulating them at this stage." Asserting that investors should be cautious of influencers, she said if there are three or four people giving us very objective good advice, there may be seven others out of 10 who are probably driven by some other considerations."

In 2019, the government enacted a law called the Banning of Unregulated Deposit Schemes Act, 2019, which looks to prevent unregulated entities from collecting deposits and duping the poor and gullible of their hard earned savings, stated the report.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.

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