Government junks FRDI Bill
The government has decided to drop the controversial Financial Resolution and Deposit Insurance (FRDI) Bill, thus allowing bank customers to breathe
easy. The Bill was introduced in the Lok Sabha in August 2017, and then sent to a joint committee of the Parliament, which is yet to submit its report. There were two controversial clauses in the Bill: a bail-in provision and insurance on deposits. The bail-in provision stipulated that if a bank failed, depositors would have to bear a part of the liability. It had angered depositors and invited criticism from opposition parties.