New Delhi: Nearly a year after introducing it in the Lok Sabha, the government on Tuesday, withdrew the Financial Resolution and Deposit Insurance (FRDI) Bill, following widespread concerns over certain provisions in the proposed legislation. A proposal to withdraw the Bill was moved by minister of state for finance Pon Radhakrishnan.
There have been concerns over the proposed ‘bail-in’ clause to resolve a failing bank and insurance cover on bank deposits.
The Bill was introduced on August 10, 2017, in the House and then referred to the Joint Parliamentary Committee (JPC).
Why has Bill been withdrawn?
- The FRDI Bill sought to make an enabling law for creation of an independent resolution corporation, to carry out speedy and efficient resolution of financial firms in distress, among others.
- The stakeholders, including the public, had raised apprehensions relating to the provisions of the FRDI Bill, like the use of bail-in instrument to resolve a failing bank.
(With inputs from Agencies)