Govt to bring back FRDI Bill, may hike insurance cover of customers

The government intends to hike the insurance cover of customers of a failed financial institution

The finance ministry has started work on reviving the contentious Financial Resolution and Deposit Insurance (FRDI) Bill, a year after the proposed law for ushering insolvency of financial institutions was withdrawn by the Union government.

“The Department of Economic Affairs is redrafting the FRDI Bill and will soon circulate it for inter-ministerial consultation,” said a top finance ministry official.

Another finance ministry official said the government would be ironing out issues related to the controversial ‘bail-in’ clause in the earlier Bill, would explore hiking the deposit insurance cover of customers, and would decide whether the resolution framework should apply to public sector