We're working on the FRDI Bill, but not sure of the timeline to table it: FM1 min read . Updated: 07 Feb 2020, 05:26 PM IST
- The FRDI Bill seeks to offer a bail-in clause to banks, which many fear will be detrimental to depositors
- Changes in laws governing cooperative banks don't affect the power of the cooperatives, said Nirmala Sitharaman
Mumbai: Finance and Corporate Affairs Minister Nirmala Sitharaman on Friday said that the Central government is clear about its commitment towards infrastructure investment.
"Our commitment towards infrastructure investment is very clearly laid out," said Sitharaman while addressing media persons here.
Earlier, she had said the Central government is pursuing disinvestment to inject greater transparency and discipline in loss-making public sector companies.
At the same time, funds raised by privatising state-owned firms will be used for creating and upgrading infrastructure across the country, which will stimulate consumer demand and create long-term assets.
Sitharaman said the listing of companies on stock exchanges disciplines a company, provides access to financial markets and unlocks its value.
It also gives an opportunity for retail investors to participate in the wealth so created, she said while addressing industry leaders at a post-Budget interaction organised by the Ministry of Finance. "Changes in laws governing cooperative banks don't affect the power of the cooperatives," said Sitharaman
The finance ministry is working on the contentious Financial Resolution and Deposit Insurance (FRDI) Bill but not sure when it will be tabled in the house, 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 RBI for retail customers in general and for MSMEs 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 ₹5 lakh.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.