Finance Minister Defends FRDI Bill Again, Says Will Protect Depositors Interest
Writer: Bharat Nayak (Founding Editor)
As the founding editor, Bharat had been heading the newsroom during the formation years of the organization and worked towards editorial policies, conceptualizing and designing campaign strategies and collaborations. He believes that through the use of digital media, one could engage the millennial's in rational conversations about pertinent social issues, provoking them to think and bring a behavioral change accordingly.
13 Dec 2017 10:59 AM GMT
Editor : Bharat Nayak
As the founding editor, Bharat had been heading the newsroom during the formation years of the organization and worked towards editorial policies, conceptualizing and designing campaign strategies and collaborations. He believes that through the use of digital media, one could engage the millennial's in rational conversations about pertinent social issues, provoking them to think and bring a behavioral change accordingly.
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.
The Union Minister for Finance & Corporate Affairs, Shri @arunjaitley making a Statement in New Delhi today about the provisions of Financial Resolution and Deposit Insurance (FRDI) Bill 2017, protecting the interests of depositors and removing any misgivings in that regard. pic.twitter.com/4DnyFiMVvQ
— Ministry of Finance (@FinMinIndia) December 11, 2017
The Union Minister for Finance & Corporate Affairs, Shri @arunjaitley said that FRDI Bill ,2017 is before the Joint Committee of Parliament. Whatever are the recommendations of the Committee, the Government will consider. But rumours are being spread about the Bill.
— Ministry of Finance (@FinMinIndia) December 11, 2017
Removing any misgivings & rebutting false rumours being spread about the Provisions of the FRDI Bill, 2017, the FM, Shri @arunjaitley said that about Rs 2.11 lakh crore is being pumped in to strengthen the Public Sector Banks.So there is no such question arises (failure of banks)
— Ministry of Finance (@FinMinIndia) December 11, 2017
The Finance Minister, Shri @arunjaitley concluded his Statement: If such situation arises, deposits made by the customers, the Government will fully protect them. The Government is very clear about it.
— Ministry of Finance (@FinMinIndia) December 11, 2017
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