Finance Minister Defends FRDI Bill Again, Says Will Protect Depositors Interest

13 Dec 2017 10:59 AM GMT
Editor : Bharat Nayak
Finance Minister Defends FRDI Bill Again, Says Will Protect Depositors Interest
Image Credits: Business Standard

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

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Bharat Nayak

Bharat Nayak

Founding Editor- Special Project

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.

Bharat Nayak

Bharat Nayak

Founding Editor- Special Project

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.

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