New Delhi: Nearly a year after introducing it in the Lok Sabha, the government on Tuesday withdrew The Financial Resolution and Deposit Insurance (FRDI) Bill, 2017, following widespread concerns over certain provisions in the proposed legislation. There have been concerns over the proposed bail-in clause in the FRDI Bill to resolve a failing bank and insurance cover on bank deposits.
The FRDI Bill was introduced on 10 August 2017 in the Lok Sabha and then referred to the Joint Committee of the Parliament.
A proposal to withdraw the bill was moved by MoS (finance) Pon Radhakrishnan on Tuesday and was approved by the House. The joint committee had last week tabled its report and had agreed with the government’s proposal to withdraw the FRDI Bill.
The FRDI Bill sought to make an enabling law for creation of an independent resolution corporation to carry out speedy and efficient resolution of financial firms in distress, among others.
Finance minister Piyush Goyal had informed the committee about various reasons for deciding to withdraw the FRDI Bill.
The stakeholders, including the public, have raised apprehensions relating to the provisions of the FRDI Bill like the use of bail-in clause to resolve a failing bank and the adequacy of deposit insurance cover, Goyal had told the panel.
PTI contributed to this story.