You are here: Home » Economy & Policy » News
Business Standard

Your deposits are safe if the bank fails, assures FM Arun Jaitley

The government tabled the Financial Resolution and Deposit Insurance Bill, 2017 in August in the Lok Sabha, which was referred to a Joint Committee of Parliament

Press Trust of India  |  New Delhi 

Arun Jaitley
Finance Minister Arun Jaitley. PTI Photo

Finance Minister on Wednesday said the proposed protects the rights of depositors, denying reports to the contrary.

"The Financial Resolution and Deposit Insurance Bill, 2017 is pending before the Standing Committee. The objective of the is to fully protect the interest of the financial institutions and depositors," he said in a tweet.



The stands committed to this objective, he added.

According to Economic Affairs Secretary S C Garg, proposes to protect existing rights of the

"There is no dilution thereof. Instead it enhances present protections in certain ways. Principal guarantee for PSU Banks' come from ownership which also remains completely unaffected," Garg said.

The tabled the Financial Resolution and Deposit Insurance Bill, 2017 in August in the Lok Sabha, which was referred to a Joint Committee of Parliament.

The bill seeks to deal with of financial service providers.

The bill provides for establishment of a resolution corporation with powers relating to transfer of assets to a healthy financial firm, merger or amalgamation, liquidation to be initiated by an order of the National Company Law Tribunal.

It can also designate certain financial providers as systematically important financial institutions, the failure of which may disrupt the entire financial system, said the 'Statement of Objects and Reasons' of the bill.

First Published: Wed, December 06 2017. 23:26 IST
RECOMMENDED FOR YOU