New Delhi, Dec 7 (PTI) An online petition against thebail-in provision in the FRDI bill has got thousands ofsignatures even as the finance ministry said that theproposal, under consideration of a joint parliamentarycommittee, is depositor friendly and provides more protection.
An online petition on Change.org against the FinancialResolution and Deposit Insurance (FRDI) Bill, 2017, has goneviral on social media, seeking public support against what itterms as an attempt to "allow a government entity to usedepositors' money to save a bank on the verge of bankruptcy".
The petition was started by a Mumbai-based individual,Shilpa Shree, with a single signature and has got over 40,000signups within 24 hours, supporting her appeal to FinanceMinister Arun Jaitley to not let this bill pass with the'bail-in' provision.
"Our hard earned money that we have saved for ourchildren and for our future will be used to bail-in thebanks," the petitioner said.
"This bill gives power to a government entity to usedepositors money to save a bank on the verge of bankruptcy.
This government entity can declare the bank doesn't owe youany money though you have deposited your hard earned moneywith it," the petition said.
Meanwhile, the finance Ministry today said that the FRDIBill is depositor friendly and provides more protection tothem compared to existing provisions.
"The FRDI Bill is far more depositor friendly than manyother jurisdictions, which provide for statutory bail-in,where consent of creditors or depositors is not required forbail-in," it said.
The FRDI bill, introduced in the Lok Sabha on August 11,2017, is under consideration of the joint committee ofParliament. The panel is consulting all the stakeholders onthe provisions of the legislation.
"The FRDI Bill does not propose in any way to limit thescope of powers for the government to extend financing andresolution support to banks, including public sector banks.
The government's implicit guarantee for public sector banksremains unaffected," it said.
The government further said Indian banks have adequatecapital and are also under prudent regulation and supervisionto ensure safety and soundness as well as systemic stability.
The existing laws ensure integrity, security and safety of thebanking system. PTI DRR BJMR.
This is unedited, unformatted feed from the Press Trust of India wire.