New Delhi: Days after the discussion over Financial Resolution and Deposit Insurance (FRDI) Bill , created rounds on social media, The Government has issued an advisory asking people to calm down; ensuring that their money would remain safe in banks.
The bill which seeks to create a framework for resolving bankruptcy in banks, insurance companies and other financial establishments; was first introduced in the Monsoon Session of the parliament but was referred to a joint parliamentary committee for review.
The committee is set to submit its report in the next session of the parliament (winter session), where an amended bill is likely to be tabled.
Online petition opposing FRDI bill:
An online petition against the same attracted thousands of signatures opposing FRDI bill.
The petition read "This bill gives power to a government entity to use depositors money to save a bank on the verge of bankruptcy. This government entity can declare the bank doesn't owe you any money though you have deposited your hard earned money with it".
What does Finance Ministry have to say?
Meanwhile, the finance Ministry today said that the FRDI Bill is depositor friendly and provides more protection to them compared to existing provisions.
"The FRDI Bill is far more depositor friendly than many other jurisdictions, which provide for statutory bail-in, where consent of creditors or depositors is not required for bail-in," it said.
The FRDI bill, introduced in the Lok Sabha on August 11, 2017, is under consideration of the joint committee of Parliament. The panel is consulting all the stakeholders on the provisions of the legislation.