Amid concerns over the safety of deposits in banks due to provisions in the Financial Resolution and Deposit Insurance (FRDI) Bill, the finance ministry 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 Arun Jaitley 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.
The Financial Resolution and Deposit Insurance Bill, 2017 is pending before the Standing Committee. The objective of the Government is to fully protect the interest of the financial institutions and the depositors. The Government stands committed to this objective.— Arun Jaitley (@arunjaitley) December 6, 2017