FRDI Bill is not going to hike the risk to your deposits7 min read 12 Dec 2017, 04:59 PM IST
The FRDI debate finally comes down on the intent of the government. Remove the political rhetoric from the provisions of the Bill to see that your bank deposits are safe
When you move a system from personality-based solutions to rule of law, there is a painful period of readjustment of the old way of doing things to the new. People, institutions and analysts all need to readjust to the new reality. The recent commentary around the Financial Resolution and Deposit Insurance (FRDI) Bill that is up for debate in the winter session of the Indian Parliament has picked up on one section (section 52) of the Bill, ignoring everything else in the 125 pages, and has resulted in panic about the safety of bank deposits if this bill gets passed. I read the Bill over the weekend and this is my understanding of what the aim of the Bill is and what it means for you.
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