LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

Govt likely to withdraw controversial FRDI Bill in current Parl session

The government is likely to withdraw the bill from the Lok Sabha in the current session of Parliament, which ends on August 10.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Govt likely to withdraw controversial FRDI Bill in current Parl session
Representational Image: Photo: IANS
Written By: PTI
Updated: Wed, Jul 18, 2018
07:09 pm
New Delhi, PTI
RELATED NEWS
Govt to withdraw FRDI bill; writes to Parliament panel Govt to withdraw FRDI bill; writes to Parliament panel
Govt open to increase deposit insurance cap of Rs 1 lakh: Arun Jaitley Govt open to increase deposit insurance cap of Rs 1 lakh: Arun Jaitley
Doubts over bail-in provisions of FRDI Bill misplaced: Jaitley Doubts over bail-in provisions of FRDI Bill misplaced: Jaitley
Panic over proposed FRDI Bill is misplaced: SBI Ecowrap Panic over proposed FRDI Bill is misplaced: SBI Ecowrap
FRDI Bill gets extension, may not come even in next Budget session FRDI Bill gets extension, may not come even in next Budget session

The government is likely to withdraw the controversial FRDI Bill in the ongoing session of Parliament in view of concerns over the 'bail-in' clause, which is feared to harm the interest of depositors, sources said.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has given its nod for withdrawal of the Financial Resolution and Deposit Insurance (FRDI) Bill, 2017, they added.

The government is likely to withdraw the bill from the Lok Sabha in the current session of Parliament, which ends on August 10.

The bill, introduced in the the lower house on August 11, 2017, has a 'bail-in' clause, which some experts say has the potential to harm deposits in savings bank accounts. 

With concerns expressed by both politicians as well as stakeholders, the government had then referred the bill to a Joint Parliamentary Committee. The panel was slated to submit its report by the last day of the ongoing Monsoon session.

Stakeholders have expressed concern about the 'bail-in' clause in the FRDI Bill, even as the government sought to allay the concerns. 

The clause has been included in the bill as one of the tools for resolution for bank failure. It provides for depositors to bear a part of the cost of the resolution by a corresponding reduction in their claims. 

This provision had raised concerns that deposits could be used to bail out failing banks.

In December last year, the then Finance Minister Arun Jaitley had asserted that the government was committed to protecting the interests of depositors in public sector banks (PSBs).

In January, Economic Affairs Secretary Subhash Chandra Garg had said that attempts to create scare regarding bail-in were totally unfounded. "70 per cent deposits are in PSBs. Most remaining deposits are in well capitalised and sound private banks. No likelihood of bail in for over 98 per cent of depositors. Remaining also subject to bail in if the depositors consent," he had tweeted.  

The FRDI Bill also proposes to create a framework for overseeing of financial institutions such as banks, insurance companies, non-banking financial companies (NBFCs) and stock exchanges in case of insolvency.

The 'Resolution Corporation', proposed in the draft bill, would look after the process and prevent the banks from going bankrupt. It would do this by "writing down of the liabilities", a phrase some have interpreted as a "bail in"

The draft bill empowers the Resolution Corporation to cancel the liability of a failing bank or convert the nature of the liability.  

 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
FRDI Bill
RELATED NEWS
Govt to withdraw FRDI bill; writes to Parliament panel Govt to withdraw FRDI bill; writes to Parliament panel
Govt open to increase deposit insurance cap of Rs 1 lakh: Arun Jaitley Govt open to increase deposit insurance cap of Rs 1 lakh: Arun Jaitley
Doubts over bail-in provisions of FRDI Bill misplaced: Jaitley Doubts over bail-in provisions of FRDI Bill misplaced: Jaitley
Panic over proposed FRDI Bill is misplaced: SBI Ecowrap Panic over proposed FRDI Bill is misplaced: SBI Ecowrap
FRDI Bill gets extension, may not come even in next Budget session FRDI Bill gets extension, may not come even in next Budget session

LATEST NEWS

Dow vs Nasdaq: Market Guru Anil Singhvi decodes opposite trends in both US indices

Anil Singhvi’s Strategy March 9: Day support zone on Nifty is 14,875-14,925 & Bank Nifty is 35,000-35,125

Punjab National Bank share price: Ventura Securities initiates coverage with a BUY for a price target of Rs 54

SBI share price today: Rs 37 dropped in 3 weeks; watch out for levels around 378

WhatsApp feature: Chat backup with password protection may be launched soon | Here's all you need to know

Delhi Budget 2021 LIVE: Top announcements, highlights

In chat with Anil Singhvi, analyst Vikas Sethi picks Nalco, L and T Finance as top buys for big gains

EaseMyTrip IPO Review: Market Guru Anil Singhvi predicts at least 50% listing gains

Hyper localisation, high personalisation to drive customer engagement in digital era: Airtel Report

PUBG Mobile Lite latest update: Season 22 end date revealed, check APK download link, Season 23 expected release and more

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved