New Delhi, Dec 6 (PTI) Finance Minister Arun Jaitleytoday said the proposed FRDI Bill protects the rights ofdepositors, denying reports to the contrary.
"The Financial Resolution and Deposit Insurance Bill,2017 is pending before the Standing Committee. The objectiveof the government is to fully protect the interest of thefinancial institutions and depositors," he said in a tweet.
The government stands committed to this objective, headded.
According to Economic Affairs Secretary S C Garg, FRDIBill proposes to protect existing rights of the depositors.
"There is no dilution thereof. Instead it enhancespresent protections in certain ways. Principal guarantee forPSU Banks' depositors come from government ownership whichalso remains completely unaffected," Garg said.
The government tabled the Financial Resolution andDeposit Insurance Bill, 2017 in August in the Lok Sabha, whichwas referred to a Joint Committee of Parliament.
The bill seeks to deal with insolvency of financialservice providers.
The bill provides for establishment of a resolutioncorporation with powers relating to transfer of assets to ahealthy financial firm, merger or amalgamation, liquidation tobe initiated by an order of the National Company Law Tribunal.
It can also designate certain financial providers assystematically important financial institutions, the failureof which may disrupt the entire financial system, said the'Statement of Objects and Reasons' of the bill. PTI DP CSABM.
This is unedited, unformatted feed from the Press Trust of India wire.