On Thursday, Finance Minister Arun Jaitley said FRDI Bill meant to protect depositors interest. FRDI is the Financial Resolution and Deposit Insurance Bill 2017, was introduced in the Lok Sabha on 11th August 2017 that was referred to the Joint Committee of the Parliament. The finance minister on his Twitter wrote that the certain misgivings have expressed in the media regarding bail in the provision. Today, the finance ministry also told that FRDI bill does not propose in any way to limit the scope of powers for the government to extend resolution and financing support to banks including the public sector banks.
However, the government ensures that FRDI provides additional protection to the depositors in more transparent manner; the government also guarantee it remains unaffected for public sector banks. The government said FRDI bill is more friendly to depositors than other jurisdictions which provide the statutory bail-in. The government’s financial Resolution and Deposit Insurance bill 2017 seeks to deal with the insolvency of the financial service providers. Today, the finance ministry has clarified the provisions of deposit protection guarantee that will maintain in the proposed FRDI bill as well.
As per the Finance Ministry, the FRDI bill will strengthen the system by adding comprehensive resolution regime which helps to ensure the failure of the financial service provider. The Indian Banks have adequate capital and supervision to ensure safety and soundness along with the systemic stability. The existing Financial Resolution and Deposit Insurance Bill ensure the integrity, security and safety of the banking system. The Ministry of finance also added that in India all the step and policy measures are taken to prevent the protection of interests of depositors and the failure of the banks such as capital adequacy and prudential norms. Moreover, the government expressed their views on the FRDI bill; it will protect the rights of depositors.
Provisions of the Financial Resolution and Deposit Insurance Bill, 2017 are meant to protect the interests of the depositors;For full details, please Log on: https://t.co/LjJlhNMOJH
— Ministry of Finance (@FinMinIndia) December 7, 2017