Finance Ministry Working On Financial Resolution And Deposit Insurance Bill, Says Sitharaman
The budget increased by five-folds the deposit insurance to Rs 5 lakh.
The finance ministry is working on the contentious Financial Resolution and Deposit Insurance Bill but not sure when it will be tabled in the house, union minister Nirmala Sitharaman said.
The comments assume importance given the massive five-fold hike in deposit insurance and the recent changes in the insolvency laws that included insolvency solutions for financial institutions.
"We are working on the FRDI Bill; but not sure when it can get through the House," the minister said.
She also welcomed the liquidity measures announced by the Reserve Bank of India for retail customers in general and for Micro, Small and Medium Enterprises and realty players in particular at the sixth monetary policy review on Thursday. The FRDI Bill seeks to offer a bail-in clause to banks, which many fear will be detrimental to depositors.
The budget has increased by five-folds the deposit insurance to Rs 5 lakh.