If you haven’t been living under the rock, you must be aware of The FRDI bill and controversial bail-in clause in it. The bail-in clause states that in case a bank is failing, the deposits in the bank could be converted into securities like stocks of a bank.
After the outrage over the bill, the finance minister first through Twitter and then through a press release defended the bill and said that the depositor’s money is safe in the banks and the bill that is to be tabled this winter session is beneficial for the public. He also alleged that wrong information is being spread about the bill.
Finance Ministry again on Monday defended the bill saying that public sector banks are being given Rs 2.11 lakh crore to strengthen them and there was no question of any bank failing. “The FRDI Bill is before the joint committee of Parliament. Whatever the recommendations of the committee are, the government will consider,” FM Arun Jaitley said.
Finance Minister has said that current govt will do everything to protect depositors money. But govt. can change and with this clause in the bill, the depositor’s money will be always at risk.
What is the FRDI Bill?
The Union government has brought about a proposition for a Financial Resolution and Deposit Insurance(FRDI) Bill, which is a part of a host of banking reforms and enactment of laws that aim to resolve the conditions of the failing banks. You can read about it here.
Also, read Banks Can Wipe Out Your Money