Letters: Fears from bailout

Lending to long-term projects is a risky proposition and creates an asset-liability mismatch

With reference to “FRDI bill: Irrelevant and unfair” (December 11), the buzz around the Financial Resolution and Deposit Insurance Bill is making ordinary people anxious because they fear their hard-earned money will be compromised if the government would like to bail out any public sector bank with their deposits. This is primarily because they assume that their deposit is safe and has a sovereign guarantee. I do not think people, in general, know about the present cap of Rs 1 lakh. Things have changed drastically in the last two decades, hence the least this government can do is to increase