The Financial Resolution and Deposit Insurance Bill, 2017 (FRDI Bill), was introduced in the Lok Sabha on August 11, 2017. The bill is presently under consideration of the Joint Committee of Parliament. The Joint Committee is consulting all the stakeholders on the provisions of the FRDI Bill. The committee is now set to invite the RBI governor Urjit Patel to brief the members. It is noteworthy that the bill was opposed by the bank unions who have also requested the Finance Minister Arun Jaitley to withdraw this legislation.
Five Things That You Should Know About The FRDI Bill
1. The legislation was introduced in the monsoon session but was later referred to the joint committee of both the houses of Parliament, the Lok Sabha and the Rajya Sabha.
2. RBI Governor Urjit Patel is likely to brief the members of the parliamentary panel assessing the crucial Financial Resolution and Deposit Insurance (FRDI) Bill next month, a member said.
3. The all party parliamentary committee has to submit its report by the last day of the first week of the winter session of Parliament.
4. The bill proposes to establish a 'Resolution Corporation' which will classify service providers such as banks and insurance companies based on their risk of failure. The corporation may also investigate their activities.
5. The bank unions were opposing the bill for this proposal and had said the objective is to heavily empower the new authority with sweeping powers to dismantle and erase public sector financial institutions.