Finance Ministry clarifies doubts raised in some section of media over FRDI-2017
Finance Ministry has clarified the doubts raised in some section of media over the Financial ...
Finance Ministry has clarified the doubts raised in some section of media over the Financial Resolution and Deposit Insurance, FRDI-2017, introduced in monsoon session of parliament.
In a statement the ministry said that the bill is presently under the consideration of the Joint Committee of the Parliament. The Joint Committee is consulting all the stakeholders on the provisions of the FRDI Bill.
Certain misgivings have been expressed in the media regarding "bail-in" provisions of the FRDI Bill. The provisions contained in the FRDI Bill, as introduced in the Parliament, do not modify present protections to the depositors adversely at all. They provide rather additional protections to the depositors in a more transparent manner.
The ministry reiterated that FRDI Bill is far more depositor friendly than many other jurisdictions, which provide for statutory bail-in, where consent of creditors or depositors is not required for bail-in. It said that FRDI Bill does not propose in any way to limit the scope of powers for the Government to extend financing and resolution support to banks, including Public Sector Banks.
The statement says, the Government's implicit guarantee for Public Sector Banks remains unaffected
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