The Tripura government has approved rules to ban ponzi schemes from operating in the state.

Tripura Law Minister Ratan Lal Nath said informed that the state council of ministers in its meeting on Tuesday approved the rules on the basis of 'The Banning of Unregulated Deposit Scheme Act', a central legislation to ban ponzi schemes.

Earlier, the state had passed 'The Tripura Protection of Interest of Depositors' Act-2020 to control investment fraud, he said.

Since the central government has passed a stringent Act in 2019 (The Banning of Unregulated Depositi Scheme Act) which is comparable to the state's Act, we repealed The Tripura Protection of Interest of Depositors' Act-2020, he said.

The minister further informed that anyone found guilty of being involved in ponzi schemes is liable to be imprisoned for one to 10 years and slapped with a fine of Rs two lakh to Rs ten lakh under the newly formulated rules.

The move is aimed at showing zero tolerance to any kind of chit fund business in Tripura, he said.

Nath, who is also the state minister of education, said the council of ministers has approved a proposal to provide financial assistance to 15,000 final year college students under Chief Minister Yuba Yogayog Yojana. Under it each selected student will receive Rs 5000 to buy a mobile phone.