FRDI Bill also introduces a menu of resolution tools, including transfer of whole or parts of the assets and liabilities of a financial firm to another person, acquisition, merger or amalgamation, bridge service provider, and bail-in, and mandates recovery and resolution planning obligations to enable careful monitoring of risk to viability of a financial firm.
The FRDI Bill also transfers the deposit insurance functions from the Deposit Insurance and Credit Guarantee Corporation to the Resolution Corporation, targeting at an integrated approach to the depositor protection and resolution.
The joint committee on the FRDI
Bill, 2017 have decided to seek extension of time up to the last day of Budget Session, 2018, as the report of the joint committee would not be ready for presentation by December 15.
639 N 28 28 * Significance at 10 % level ** Significance at 5 % level *** Significance at 1 % level Table 6 Transition indicator scores and freedom indices for 12 groups: 2006 TI FRDI
The Bhartiya Janata Party (BJP) had proposed the FRDI
Bill in 2016 that includes Insolvency and Bankruptcy Code to lay out the rules regarding the winding up or revival of an ailing company.
He was apparently referring to the raging controversy over a bail-in provision in the FRDI
Bill under which banks will be allowed to forfeit major portion of deposits of account holders in case of crisis in the financial institution.
Certain misgivings have been expressed in the media, especially social media, regarding the depositor protection in the context of "bail-in" provisions of the FRDI
It is contemplating a strike action against this unwarranted FRDI
Bill, if the Government proceeds further (with the Bill)," it said.
With regards to the FRDI
Bill, the ministry clarified that it was expected to replace the existing resolution regime with a more comprehensive one, thereby creating a more robust system of looking into depositors' resolutions.
is contemplating an increase," the Ecowrap said.
The government tabled the FRDI
Bill, 2017, in August in the Lok Sabha, which was referred to a Joint Committee of Parliament.
Bill will strengthen the system by adding a comprehensive resolution regime that will help ensure that, in the rare event of failure of a financial service provider, there is a system of quick, orderly and efficient resolution in favour of depositors," it added.