New Delhi: The government on Thursday came out in defence of its financial resolution and deposit insurance bill, stating the provisions are depositor friendly and provide additional protection. The statement comes in the wake of certain misgivings doing the rounds about the "bail-in" provision in the Financial Resolution and Deposit Insurance Bill, 2017 (FRDI Bill). The provisions in the FRDI Bill do not affect current protections for depositors at all, the finance ministry held, maintaining that they rather provide additional protections in a more transparent manner. "The FRDI Bill is far more depositor friendly than many other jurisdictions, which provide for statutory bail-in, where the consent of creditors or depositors is not required for bail-in," it added. The government statement comes after an onlinepetitionon Change.org against the bail-in clause of the FRDI Bill, went viral on social media, getting some 40,000 sign-ups within 24 hours.
Source: The Telegraph December 07, 2017 19:30 UTC