FRDI Bill virtual dacoity on common man's bank a/cs: Goa Cong

Goa Congress chief Shantaram Naik termed today the proposed Financial Resolution and Deposit Insurance (FRDI) Bill, 2017 as a "virtual dacoity" on the bank accounts of common man.
"The BJP government is going to commit a virtual dacoity on the bank accounts of common people through a legislation called Financial Resolution and Deposit Insurance Bill (FRDI) Bill 2017," Naik alleged.
He was speaking to reporters here to register his protest against the bill.
"If the bill becomes a law, the government can take a standdishonouring your cheques even if you have fundsin your account and deny you your right to withdraw money from your hard-earned savings," Naik claimed.

"Your own fate and the fate of your children will be at riskif the banks treat you as a pauper," he said.
He alleged that through this legislation, the BJP government seeks to financially help those banks and industrialists, who are under heavy debts.

"The government wants to rescue the financial institutions, banks and other such bodies andfraudulently transfer the hard-earned money of farmers, labourers, small traders and salaried class to salvage these financial institutions," he alleged.
The FRDI Bill proposes to create a framework for overseeing financial institutions such as banks, insurance companies, non-banking financial services companies and stock exchanges in case of insolvency.

The Resolution Corporation, proposed in the draft bill, would look after the process and prevent the banks from going bankrupt. It would do this by "writing down of the liabilities", a phrase some have interpreted as a "bail-in".
The draft bill empowers Resolution Corporation to cancel the liability of a failing bank or convert the nature of the liability.
The so-called "bail-in" clause in the draft legislation has been commented upon by experts as of bringing potential harm to deposits, in the form of savings accounts.