With stakeholders expressing apprehension over the provisions of the Financial Resolution and Deposit Insurance Bill, 2017, (FRDI), the government decided to withdraw it in the ongoing monsoon session of Parliament on the recommendation of the Parliamentary Committee headed by senior BJP leader Bhupendra Yadav.
In a statement on the decision to withdraw the bill, Finance Minister Piyush Goyal said the stakeholders, including the public, raised apprehensions relating to the provisions of the FRDI Bill, like the use of bail-in instrument to resolve a failing bank, the adequacy of deposit insurance cover and the felt need to revise the insurance limit substantially, and application of resolution framework for public sector banks.
As resolution of these issues would require a comprehensive examination and reconsideration, it is therefore appropriate that the Bill may be withdrawn.
In view of this, the minister said the legislative proposal to enact the FRDI Bill is being dropped and the Bill is being withdrawn from the Lok Sabha to enable further comprehensive examination and recommendation of the subject.
The Bill was introduced in the Lok Sabha on 10 August last year and thereafter, was referred to the Joint Committee of Parliament, which was asked to submit its report on the Bill by the last day of the current monsoon session. The 30-member committee held 13 sittings during which they elicited the views of a large number of stakeholders on the bill.