The Rajasthan government on Thursday gave "in - principle" approval to the Rajasthan Protection of Interests of Depositors (in Financial Establishments) Ordinance, 2016, at a cabinet meeting held here.
Rajasthan's Parliamentary Affairs Minister Rajendra Rathore said that the main aim of the ordinance is to protect the interest of depositors in case of fraudulent default by any financial establishment.
"The ordinance will be sent soon to the President of India through Governor for his consent, " said Rathore in a statement.
According to the provision in the ordinance, if financial establishment defaults any repayment of deposit on maturity along with any benefit as promised or fails to render service as assured against the deposit, owners/operators of such financial establishment shall be punished with imprisonment for a term from three to seven years and with fine from Rs 2 to 5 lakh.
Provision has also been made regarding attachment of properties on default of return of deposit.
The cabinet also approved the proposal to establish Nirwan University on 34 acres of land at Jhar Bassi near Jaipur by Shri Nirwan Charitable Trust, Sri Ganganagar.
The university, which is likely to entail an investment of Rs 250 crores, will provide courses and research facility in subjects like medical, dental, nursing, physiotherapy, life sciences, pharmacy and homeopathy etc.