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FRDI: ‘Depositors will be protected’
Context
Finance Minister Arun Jaitley has categorically asserted that depositors would be “fully protected” in the event of a bank failure.
Backdrop: Financial Resolution and Deposit Insurance Bill 2017 is before the Joint Committee of Parliament
- Mounting concerns about a proposed ‘bail-in’ clause in a draft legislation on financial resolution
- bail-in’ clause, which allows for the cancellation or modification of bank deposits to shore up bank finances
View of the Govt.
About ₹2.11 lakh crore is being pumped in to strengthen the public sector banks. So no such question arises
Concern
If the clause is included in the Bill, then one of the impacts will be on the price of gold, which will shoot up
