Govt may junk FRDI Bill as bail-in clause makes depositors jittery: Report

The clause raised concerns among people who feared that they would have to lose their money deposited in banks in case of insolvency

In the wake of widespread criticism over the controversial 'bail-in' clause, the government has decided to drop the Financial Resolution and Deposit Insurance (FRDI) Bill, according to a newspaper report.

Sources said the decision to withdraw the FRDI Bill, 2017, was taken a day ahead of the July 14 protests planned by unions representing employees of banks and state-run insurance companies, The Indian Express reported on Wednesday. It said the Department of Economic Affairs had been instructed to prepare the withdrawal proposal for the Cabinet’s approval.

The “bail-in” clause in the Bill, introduced in August 2017, said that in case