Says FRDI Bill maintains present protections to depositors
AMN
The Government has said, Financial Resolution and Deposit Insurance, FRDI Bill is far more depositor friendly than many other jurisdictions, which provide for statutory bail-in, where consent of creditors or depositors is not required for bail-in.
In a statement today, Ministry of Finance said, the Bill does not propose in any way to limit the scope of powers for the Government to extend financing and resolution support to banks, including Public Sector Banks. It said, Government’s implicit guarantee for Public Sector Banks remains unaffected.
The Ministry said, certain misgivings have been expressed in the media regarding bail-in provisions of the FRDI Bill. It said, the provisions contained in the FRDI Bill, do not modify present protections to the depositors adversely at all.