Shiv Sena launches scathing attack on Centre over FRDI Bill

There are growing fears that the Financial Resolution and Deposit Insurance Bill Bill 2017 (FRDI) will result in people losing their hard earned money in case a bank fails.

The Shiv Sena has launched a scathing on the BJP-led government at the Centre over the Financial Resolution and Deposit Insurance Bill which would be discussed in the Winter Session of Parliament.

The Bill was presented in the Lok Sabha in August before it was referred to a joint committee of Parliament.

The Shiv Sena, in its mouth piece Saamna, said, "After the Central Government proposed FRDI bill, it has launched a big scare among people as it purportedly allows failing banks to use depositors money to cut losses."

"This bill has given power to a government entity to use depositors' money to save a bank on the verge of bankruptcy. This government entity can declare the bank doesn't owe you any money though you have deposited your hard earned money with it," it added.

There are growing fears that the Financial Resolution and Deposit Insurance Bill Bill 2017 (FRDI) will result in people losing their hard earned money in case a bank fails.

The FRDI proposes a "resolution corporation" which, in association with a regulator, will determine the amount of money of depositors to be insured in case a bank fails. The bill says that the provision of bail-in will not be applicable to "any liability owed by a specified service provider to the depositors to the extent such deposits are covered by deposit insurance".

OneIndia News