A group representing tenants, landlords, agents, consumer groups and housing organisations will be advising ministers on the introduction of the scheme.
Housing and Communities Minister, Alex Neil, says it was time to protect tenants. He also promised strong action to protect students and vunerable tenants.
England and Wales launched a similiar scheme in 2007 but a recent survey by deposit provider DPS claimed that 1 in 3 landlords were ignoring the law.