[India], Jan 3 (ANI): Following media reports on bail-in provisions under the Financial Resolution and Deposit Insurance (FRDI) Bill, 2017, Department of Economic Affairs Secretary Subhash Chandra Garg on Wednesday claimed that these provisions would not be applicable to around 98 percent of depositors.
"Attempts to create scare regarding bail in were totally unfounded. 70 percent deposits are in PSBs. Most remaining deposits are in well capitalised and sound private banks. No likelihood of bail in for over 98 percent of depositors. Remaining also subject to bail in if the depositors consent," Garg tweeted.
The Ministry of Finance on Tuesday while dismissing the rumours circulating around bail-in provisions under the FRDI Bill assured that the interests of depositors (both insured and uninsured) would be protected.
"Certain misgivings have been expressed in the media, especially social media, regarding the depositor protection in the context of "bail-in" provisions of the FRDI Bill. These misgivings are entirely misplaced," an official statement from the Ministry noted.
On a related note, the FRDI Bill is expected to replace the existing resolution regime with a more comprehensive one, thereby creating a more robust system of looking into depositors' resolutions.
It was introduced in Lok Sabha on August 10, 2017, and is presently under the consideration of the Joint Committee of the Parliament, who is consulting all the stakeholders on the provisions of the Bill. (ANI)