The Bail-in Pro­vi­sion

Consumer Voice - - Bank Fixed Deposits -

Bail-in has been pro­posed as one of the res­o­lu­tion mech­a­nisms in one of the clauses (52) for sus­tain­abil­ity of a fail­ing fi­nan­cial firm. The Bill pro­vides for the es­tab­lish­ment of a res­o­lu­tion cor­po­ra­tion with the power to liq­ui­date de­pos­i­tors’ money in case of bank­ruptcy. Bail-in can also be in­voked if the de­pos­i­tor had given prior con­sent at the time of sign­ing the de­posit ap­pli­ca­tion/forms.

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