Press Esc to close

Govt defends FRDI Bill, says no threat to depositors' money

DH News Service, New Delhi, Dec 7 2017, 21:40 IST
New Delhi: Union Minister for Finance and Corporate Affairs, Arun Jaitley during the 4th meeting of Pre-Budget Consultations with stakeholders groups from Social Sector in connection with the forthcoming Union Budget 2018-19, in New Delhi on Wednesday. PTI Photo by Kamal Singh(PTI12_6_2017_000114A)

New Delhi: Union Minister for Finance and Corporate Affairs, Arun Jaitley during the 4th meeting of Pre-Budget Consultations with stakeholders groups from Social Sector in connection with the forthcoming Union Budget 2018-19, in New Delhi on Wednesday. PTI Photo by Kamal Singh(PTI12_6_2017_000114A)

The government on Thursday defended the provisions of the Financial Resolution and Deposit Insurance (FRDI) Bill after it came under attack for one of its clauses allegedly allowing depositors' money being used for failing financial institutions stay afloat.

"The objective of the FRDI Bill is to fully protect the interests of the financial institutions and depositors," Finance Minister Arun Jaitley said in a tweet.

"The FRDI Bill will strengthen the system by adding a comprehensive resolution regime that will help ensure that, in the rare event of failure of a financial service provider, there is a system of quick, orderly and efficient resolution in favour of depositors," he said.

"Certain misgivings have been expressed in the media regarding 'bail-in' provisions of the FRDI Bill. The provisions contained in the FRDI Bill, as introduced in the Parliament, do not modify present protections to the depositors adversely at all," Jaitley said.

The FRDI Bill, 2017, introduced in Lok Sabha in August, is under consideration of a joint committee of Parliament, which is in the process of consulting all the stakeholders on the provisions of the bill.

"The FRDI Bill is far more depositor-friendly than many other jurisdictions, which provide for statutory bail-in, where consent of creditors/depositors is not required for bail-in," the Finance Ministry said in a statement.

The FRDI Bill does not propose in any way to limit the scope of powers for the government to extend financing and resolution support to banks, including public sector banks. The government's implicit guarantee for public sector banks remains unaffected, it said.

Go to Top

More from this section
Most trending stories
Photo Gallery
Prime Minister Narendra Modi greets a gathering during 'Rally for Change' at Jawaharlal Nehru...

Prime Minister Narendra Modi greets a gathering during 'Rally for Change' at Jawaharlal Nehru...

Rahul Gandhi, newly elected president of India's main opposition Congress party, kisses the...

Rahul Gandhi, newly elected president of India's main opposition Congress party, kisses the...

A performer poses during celebrations after Rahul Gandhi, newly elected president of India's main...

A performer poses during celebrations after Rahul Gandhi, newly elected president of India's main...

Defence Minister Nirmala Sitharaman, Army Chief General Bipin Rawat, Chief of Naval Staff Admiral...

Defence Minister Nirmala Sitharaman, Army Chief General Bipin Rawat, Chief of Naval Staff Admiral...

Army and Air Force jawans pay homage to the martyrs of Indo-Pakistani War of 1971, on the...

Army and Air Force jawans pay homage to the martyrs of Indo-Pakistani War of 1971, on the...

Women take part in a bike rally to commemorate the Vijay Diwas celebrations in Karad, Maharashtra...

Women take part in a bike rally to commemorate the Vijay Diwas celebrations in Karad, Maharashtra...

Polling staff check EVM one day ahead of the Amritsar Municipal Corporation elections, in...

Polling staff check EVM one day ahead of the Amritsar Municipal Corporation elections, in...

Umarte Sau Crore Abhiyan Bihar members with eunuchs at a candle light march during a protest...

Umarte Sau Crore Abhiyan Bihar members with eunuchs at a candle light march during a protest...

Indian Air Force's 'Akash Ganga' sky diving team members perform during an air show on the...

Indian Air Force's 'Akash Ganga' sky diving team members perform during an air show on the...

The new Stoos Bahn, which claims to be the steepest funicular railway in the world, stands on its...

The new Stoos Bahn, which claims to be the steepest funicular railway in the world, stands on its...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.