This provision would be last in the line for payments in case of liquidation.The deposit insurance scheme currently covers all banks, commercial, regional rural and co-operative banks. The controversial provision of ‘bail in’ has been suggested, among various options, to resolve the stressed financial services companies. But the plan has generated a lot of heat with bank unions as well as political parties criticising the move that has the potential to use deposits, beyond the insured amount, for reviving the bank.The government hinted at reworking the provision. “Drafting is still on. A lot of corrections will take place,” finance minister Arun Jaitley told reporters after the Cabinet briefing.

Source: Economic Times December 02, 2017 05:03 UTC