11
Tuesday
December 2018
7:36 AM IST
News Headlines
Home   | Main News   | Kerala  | National   | International  | Business   | Sports   | Entertainment   | Columns   | Offbeat   | Health   | About Deepika 
Business News
Govt withdraws FRDI bill in Parliament following backlash
 
New Delhi: The government on Tuesday withdrew the controversial Financial Resolution and Deposit Insurance (FRDI) bill following widespread criticism of its controversial provisions, including a “bail-in” clause that suggests depositor money could be used by failing financial institutions to stay afloat.

The lack of clarity over protecting existing levels of deposit insurance for smaller deposits also led to a lot of criticism.At present, deposit insurance is available for all deposits of up to ?1 lakh but there was no clarity on whether it will be continued in the bill.Minister of state for finance Pon Radhakrishnan moved the proposal for withdrawal of the bill in Lok Sabha, which was accepted by the House.

The FRDI bill, 2017 was tabled in the Lok Sabha in August 2017, following which it was referred to the joint parliamentary committee. It was brought in to limit the fallout of the failure of institutions such as banks, insurance companies, non-banking financial companies, pension funds and stock exchanges.

However, opposition parties termed some of the bill’s provisions anti-people and anti-poor and pointed out that people’s money will be used to bail out banks that make bad lending decisions through a corresponding reduction in the claims of depositors.The government vociferously defended the provisions of the bill for months, pointing out that the bail-in clause will not adversely impact depositors.

The government had maintained that the implicit sovereign guarantee for state-run banks remains unaffected. Prime Minister Narendra Modi had also sought to assure people that the bill was consumer friendly and will protect the public’s deposits.

Last week, Union finance minister Piyush Goyal had informed the joint committee that the public had expressed concerns over the provisions of the bill, including the use of the bail-in instrument to help a failing bank, the adequacy of deposit insurance cover and the need to revive insurance limits substantially, and application of the resolution framework for public sector banks. Goyal said that the resolution of these issues would require a comprehensive examination and reconsideration.


Sensex cracks over 550 pts; Nifty drops below 10,600
India's coal output up 10% to 156 MT during Apr-Nov
Prabhu links creativity & business opportunities to cheap beverages in Goa
31st GST Council to meet on Dec 22 in Delhi
Cabinet Approves Policy to Double Farm Exports to $60 Billion by 2022
RBI keeps key rates unchanged
NTPC wins 85 MW solar capacity in UP Govt tender
Maintain status on currency management, HC tells SBI
Amway India enters herbal skincare space
New 2018 Maruti Suzuki Ertiga Launched In India, Prices Start At ? 7.44 lakh
Centre's New Move May Escalate Feud With RBI Ahead Of Board Meet: Report
Air India eyes Rs 800 cr from sale of over 70 properties
Intel India opens design house costing Rs 1,100 cr at B'luru
Sensex rebounds 332 pts on easing crude, rupee gains
Govt mulls second round of 2,500 MW medium-term PPA auction
India invites Swedish companies to explore investment opportunities
Govt cancels ED officer Rajeshwar Singh's leave
Facebook blocks 115 accounts ahead of US midterm elections
Indian norms on PCA, capital are conservative, rule-based: SBI
SBI back in black on credit growth
KERALA NEWS
Activist Rehana Fathima, Who Attempted Sabarimala Trek, Arrested Over Facebook Post
 (Kochi, Nov 28, 2018): Model and activist Rehana Fathima, who tried to reach Kerala's Sabarim  
Good news for Keralite Nurses: IELTS cut-off reduced to 6.5
BJP leader K Surendran, 71 others granted bail
Sabarimala protests: Arrests up to 2061, Kerala HC warns police
INTERNATIONAL NEWS
Trump's potential next chief of staff pick leaving White House
 Washington, Dec 10 (AFP) The White House official widely touted as Donald Trump's favourite to succe
UK PM faces fight for her political life in Brexit deal
Iran arrests 10 over suicide attack on police
Trump chooses new Joint Chiefs of Staff chairman, against Mattis wishes
NATIONAL NEWS
BJP mocks Oppn meet, asks them to reveal PM candidate's name
 Kolkata, Dec 10 (PTI) BJP national general secretary Kailash Vijayvargiya has mocked the scheduled m
RBI Governor Urjit Patel makes loud noise with silent exit
Can special consideration be shown to man with skin disorder: HC asks Centre
BJP files caveat in SC over 'rath yatra' in WB
Untitled Page
Rashtra Deepika LTD
Copyright @ 2018 , Rashtra Deepika Ltd.