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Centre tries to allay FRDI Bill concerns

The crux of the issue is the bail-in provision, which seeks to allow a government entity to use depositors' money to save a bank on the verge of bankruptcy

Indivjal Dhasmana  |  New Delhi 

Amid concerns over the safety of deposits in banks due to provisions in the (FRDI) Bill, the on Thursday said the Bill was more depositor-friendly than the current mechanism.
 
The crux of the issue is the bail-in provision, which seeks to “allow a government entity to use depositors' money to save a bank on the verge of bankruptcy”.

 
An online petition against the Bill has got thousands of signatures within 24 hours. A Mumbai-based individual, Shilpa Shree, started the petition, which has got over 40,000 sign-ups within 24 hours, supporting her appeal to Union Finance Minister to not let this Bill pass with the provision.
 
“Our hard earned money that we have saved for our children and for our future will be used to bail-in the banks,” the petitioner said.
 
The ministry, on its part, said the Bill was far more depositor-friendly than in many other jurisdictions.

First Published: Fri, December 08 2017. 01:12 IST
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