New Delhi, December 18, 2017
LS Speaker allows submission of report on the last day of Budget Session
Depositors in banks need not fret about their monies getting used for any ‘bail in’ exercises any time soon.
This is because the Joint Committee of Parliament looking into the Financial Resolution and Deposit Insurance (FRDI) Bill 2017 has sought extension of the deadline for submission of its report to the last date of the 2018 Budget session.
Acceding to the Joint Committee’s request, Lok Sabha Speaker Sumitra Mahajan on Monday granted extension of time for presentation of the report to the last date of the Budget session.
Similarly, the Lok Sabha Speaker also granted extension of time for presentation of the Joint Committee report on the land bill (Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (amendment) Second Bill 2015) up to the last date of Monsoon Session 2018.
With the FRDI Bill indicating that depositors’ monies could be used for “bail-in” of failing banks, the Bill has created widespread fear, apprehension and panic amongst depositors.
The apprehension is that deposits in banks would not be returned because of the “bail-in” clause in the Bill.
The FRDI Bill was introduced in Parliament on the last day of the previous session. This Bill is now before the Joint Committee of Parliament.
It was widely believed that Centre will, in the ongoing Winter Session, take steps to enact the FRDI Bill, which provides the insolvency framework for financial firms, including banks and insurance entities.
It may be recalled that some bank employee unions had cautioned the Centre against proceeding further with the enactment of FRDI Bill.
The government should not go ahead with the FRDI Bill as it is wrongly timed and unwarranted in India, CH Venkatachalam, General Secretary, AIBEA, had recently told BusinessLine.
[The Hindu Business Line]