Gov­ern­ment junks FRDI Bill

India Business Journal - - NEWS ROUND-UP -

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.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.