{"id":33406,"date":"2018-10-30T12:09:24","date_gmt":"2018-10-30T06:39:24","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=33406"},"modified":"2018-10-30T12:09:24","modified_gmt":"2018-10-30T06:39:24","slug":"frdi-bill-does-not-adversely-alter-depositor-protection","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/frdi-bill-does-not-adversely-alter-depositor-protection\/","title":{"rendered":"\u2018FRDI Bill does not adversely alter depositor protection\u2019\u00a0"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/business\/Economy\/frdi-bill-does-not-adversely-modify-depositor-protections-government\/article21291279.ece\"><strong>\u2018FRDI Bill does not adversely alter depositor protection\u2019<\/strong><\/a><strong>\u00a0<\/strong><\/p>\n<p><strong>Context<\/strong><\/p>\n<p>In an attempt to clear the air about bank deposit protection under the proposed Financial Resolution and Deposit Insurance\u00a0<a href=\"http:\/\/www.thehindu.com\/tag\/1210-1206-1197\/insurance\/?utm=bodytag\">\u00a0<\/a>(FRDI) Bill 2017, the government on Thursday said the provisions in the Bill do not adversely modify existing protections granted to depositors at all, adding that the legislation would be far more depositor-friendly than those in other jurisdictions<\/p>\n<p><strong>What did the government say?\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong><\/p>\n<p>Government said that<\/p>\n<p>\u201cThe FRDI Bill will strengthen the system by adding a comprehensive resolution regime that will help ensure that, in the rare event of failure of a financial service provider, there is a system of quick, orderly and efficient resolution in favour of depositors\u201d<\/p>\n<ul>\n<li><strong>Misgivings<\/strong>: \u201cCertain misgivings have been expressed in the media regarding \u2018bail-in\u2019 provisions of the FRDI Bill,\u201d the statement added. \u201cThe provisions contained in the FRDI Bill, as introduced in the Parliament, do not modify present protections to the depositors adversely at all. They provide additional protections to the depositors in a more transparent manner<\/li>\n<li>The FRDI Bill will not limit the scope of powers for the government to extend financing and resolution support to banks, including public sector banks, saying that the Government\u2019s implicit guarantee for public sector banks remains unaffected<\/li>\n<\/ul>\n<p><strong>Backdrop<\/strong><\/p>\n<p>This statement comes against the background of increasing criticism in the media and on social media of the perceived nature of the \u2018bail in\u2019 clause, which allows a Resolution Corporation to cancel or modify the liabilities of a failing bank, something analysts have said could extend to bank\u00a0deposits as well<\/p>\n<ul>\n<li>The FRDI Bill was introduced in the Lok Sabha on August 10, 2017, and is currently under the consideration of the Joint Committee of the Parliament<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>\u2018FRDI Bill does not adversely alter depositor protection\u2019\u00a0 Context In an attempt to clear the air about bank deposit protection under the proposed Financial Resolution and Deposit Insurance\u00a0\u00a0(FRDI) Bill 2017, the government on Thursday said the provisions in the Bill do not adversely modify existing protections granted to depositors at all, adding that the legislation&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/frdi-bill-does-not-adversely-alter-depositor-protection\/\">Continue reading <span class=\"screen-reader-text\">\u2018FRDI Bill does not adversely alter depositor protection\u2019\u00a0<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-33406","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704739089},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/33406","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=33406"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/33406\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=33406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=33406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=33406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}