FRDI Bill: Parliament grants more time to joint panel to submit report

The introduction of the Financial Resolution and Deposit Insurance Bill in Parliament will get delayed with the joint parliamentary panel looking into the proposed legislation getting an extension of time to submit its report on the matter.

This is the second occasion that the committee has been given additional time after an extension was granted in December last year.

The Lok Sabha on Friday gave its nod to a motion to grant the Joint Committee on the FRDI Bill time up to the last day of the Monsoon Session 2018 for submitting the report.

The Monsoon Session is generally convened during July-August every year.

The approval for the motion seeking more time for submission of the report was granted by a voice vote amid noisy protests in the House.

In December, the joint committee was given time till the last day of the ongoing Budget Session.

Concerns have been raised in various quarters about certain provisions of the bill which was introduced in August last year in the Lok Sabha.

The bill proposes to create a framework for overseeing of financial institutions such as banks, insurance companies, non-banking financial services (NBFC) companies and stock exchanges in case of insolvency.

The so-called "bail-in" clause in the draft legislation has been commented upon by experts who have expressed apprehension about potential harm to the deposits in the form of savings accounts.

Currently, only the deposits of up to Rs 100,000 are protected under the Deposit Insurance and Credit Guarantee Corporation Act that is sought to be repealed by the bill.