Govt likely to remove controversial bail-in provision from FRDI Bill

The Narendra Modi government is likely to remove the controversial “bail-in provision” from the revamped Financial Resolution and Deposit Insurance (FRDI) Bill.

As reported earlier, the finance ministry has started work on reviving the Bill a year after withdrawing it. The proposed law was mooted to usher insolvency of financial institutions.

Officials say the redrafted and revamped Bill will be a crucial tool for the government to deal with the liquidity crisis in the non-banking financial company (NBFC) sector, as a number of NBFCs like Infrastructure Leasing & Financial Services and Dewan Housing Finance Corporation (DHFL) have defaulted on their payments to