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The Union Cabinet on Wednesday approved the introduction of a new Bill to resolve bankruptcy cases affecting financial sector entities, including banks and insurance companies. Critically examine.

The Union Cabinet on Wednesday approved the introduction of a new Bill to resolve bankruptcy cases affecting financial sector entities, including banks and insurance companies. Critically examine.(GS 2)

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  • AG18

    The union cabinet approved the introduction of a new bill to resolve bankruptcy cases affecting financial sector entities,including banks and insurance companies.
    when the Financial Resolution and Deposit Insurance Bill, 2017 enacted,it will help the way for setting up of the Resolution Corporation that would protect the stability and resilience of the financial system; protecting consumers of covered obligations up to a reasonable limit; and protecting public funds, to the extent possible.
    This bill seeks to give comfort to the consumers of financial service providers in financial distress.It would help in maintaining financial stability in the economy by ensuring adequate preventive measures, while at the same time providing the necessary instruments for dealing with an event of crisis.