Finance Ministry working on FRDI bill, says Sitharaman

PTI

Chennai: Union Minister for Finance and Corporate Affairs Nirmala Sitharaman speaks at an interactive session on the Union Budget 2020-2021 with industrialists, in Chennai, Saturday, Feb. 8, 2020. (PTI Photo)

Chennai: Union Minister for Finance and Corporate Affairs Nirmala Sitharaman speaks at an interactive session on the Union Budget 2020-2021 with industrialists, in Chennai, Saturday, Feb. 8, 2020. (PTI Photo)

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, Union Minister Nirmala 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 Rs 5 lakh.

(PTI)