Modi government's FRDI bill may take away all your hard-earned money
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http://indiatoday.intoday.in/story/frdi-bill-ba...
- Under Section 52 of the FRDI Bill, the rescue body can cancel even the Rs 1 lakh insurance that you get under the current law. In this case, a bank can even declare that they don’t owe you any money at all.
- The same Section provides an option to the rescue body to modify a bank’s liability. For example, if you deposit a certain amount of money for a certain period of time as savings (say, 5 or 10 years), the bank can keep the money in a locked-in period (in a FD) and change the time period without consulting you.
- According to the bill, the bank may be exempted to fulfill its promises to depositors in extreme cases. This means you lose all your money.
- This can happen in case of an economic downturn, when banks (who provide money to large corporations who are unable to repay the amount) ask for a bail-in option.
- The bank may turn your savings into a fixed deposit without asking you and that too at a lower interest rate and you cannot even challenge it, unless, you challenge the law.
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Update
FDRI Bill to be more depositor-friendly, clarifies Centre: The Financial Resolution and Deposit Insurance Bill, 2017 (FRDI Bill) is far more depositor friendly than many other jurisdictions which provide for statutory bail-in, where consent of creditors/depositors is not required for bail-in, the Ministry of Finance said on Thursday.The ministry in its official statement said that certain misgivings have been expressed in the media regarding ‘bail-in’ provisions of the FRDI Bill and it clarified that the provisions of the bill are in line with the objective of the government to fully protect the interest of the financial institutions and the depositors.
‘The FRDI 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.
The provisions contained in the FRDI Bill, as introduced in the Parliament, do not modify present protections to the depositors adversely.
‘The FRDI Bill does not propose in any way to limit the scope of powers for the government to extend financing and resolution support to banks, including Public Sector Banks. The government’s implicit guarantee for Public Sector Banks remains unaffected,’ the Ministry of Finance said.
FRDI bill was introduced in the Lok Sabha on August 10, 2017 is presently under the consideration of the Joint Committee of the Parliament.
The Joint Committee is consulting all the stakeholders on the provisions of the FRDI Bill. — ANI
What are they trying to say in the new update?
I am not able to comprehend exactly. Will read it again in Morning.
I just came to know that while our Bank Insurance is till 1 lakh (set in 1960s), Cyprus Bank guarantee was near about 80 lkah INR. Ideally Bank insurance should be increased from 1 lakh to 10-15 lakh keeping in mind the inflation from 1960 to 2017
Don’t worry Modi, we already Moved to Crypto market !! Now shut your mouth up and ****** own mouth !!
We know only 2 things
1. Land
2. Crypto
you can stop btc in india but not in other country !!
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Preparing For Cyprus Moment: Centre May Allow Banks To Use Your Hard-Earned Deposits In Case It Collapses
Scary Bail-in clause in FRDI Bill cleared by the Union Cabinet in June 2017 allows banks to finance themselves using depositors money
https://www.outlookindia.com/website/story/prep...