FRDI Bill should focus on speedy resolution of stressed financial firms

Most legal experts believe had the FRDI Bill been enacted alongside the Insolvency and Bankruptcy Code, it would have helped the government deal with the crisis better

The vacuum in the dispute resolution regulatory environment is being felt the most as policymakers and regulators grapple with the fallout of the meltdown in the infrastructure lending major IL&FS, cases of business failure in some NBFCs, and the stress in the cooperative banking system. This has forced the government to take a fresh look at the Financial Resolution and Deposit Insurance (FRDI) Bill, 2017. The Bill was shelved in August last year following apprehensions around the ‘bail-in’ clause by depositors and stakeholders of a failed financial service provider. 

“The FRDI Bill, 2017, was not marketed well. The presence of the