Conflicting views between govt and RBI led to withdraw of FRDI Bill

RBI criticised various provisions that might have transferred some of its powers to the proposed Resolution Corporation

Before the government decided to withdraw the contentious Financial Resolution and Deposit Insurance (FRDI) Bill, 2017, various regulators and institutions had objected to it.

These included the Reserve Bank of India (RBI), which criticised various provisions that might have transferred some of its powers to the proposed Resolution Corporation. Strong opposition came from the RBI governor Urjit Patel, who pressed for a need to create a clear distinction between the role of the regulator and the proposed Corporation.

Patel wanted “proper harmonisation of roles and responsibilities of the regulators and Resolution Corporation, so as to obviate the scope for conflicts of jurisdictions”,