The Financial Resolution and Deposit Insurance Bill, 2017 (FRDI Bill) goes beyond the current provisions to provide greater protection to depositors, the finance ministry has said defending the Bill that has raised apprehensions in some quarters.
The statement follows concerns regarding "bail-in" provisions of the Bill. "The provisions contained in the FRDI Bill, as introduced in the Parliament, do not modify present protections to the depositors adversely at all. They provide rather additional protections to the depositors in a more transparent manner," the statement said clarifying the provisions. Introduced in the Lok Sabha on August 10, the Bill is presently under the consideration of a joint committee of Parliament, which is consulting all the stakeholders on the provisions of the proposed legislation. The claim of depositors will be further strengthened as the FRDI Bill raises the order of priority for uninsured deposits above than unsecured creditors, central and state governments, a government official told ET.