Deposits in banks will be fully protected: govt

Finance Minister Arun Jaitley once again assured depositors that their money kept in banks would be fully protected by the government.

He also hinted that the government was open to tweaking the provisions of the Financial Resolution and Deposit Insurance Bill (FRDI) 2017, if needed.

"The FRDI Bill is before the joint committee of Parliament. The government will consider the recommendations of the committee," he said here, scotching rumours about the provisions of the bill.

Jaitley said the government has promised a whopping Rs 2.11 lakh crore bank recapitalisation plan to strengthen public sector banks.

"However, if any such situation arises, the government will fully protect the deposits made by customers; the government is very clear about it," the finance minister said.

This is the second time in a week that the government has given such an assurance to citizens after some reports said that a provision in the FRDI Bill allows depositors' money to be used for failing financial institutions to stay afloat.

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

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