Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: 4.8
Article rating: 5.0
Article rating: 3.0
Article rating: No rating
Article rating: 5.0
Article rating: No rating
Article rating: No rating
Article rating: 4.5
Article rating: No rating
Article rating: No rating
Article rating: 4.2
Article rating: 5.0
Article rating: 4.0
Article rating: No rating
Article rating: No rating


Opposing FRDI Bill, bankers plan to strike work

Author: IANS/Tuesday, December 12, 2017/Categories: Banking & Financial Services

Opposing FRDI Bill, bankers plan to strike work

Chennai, Dec 12 - Opposing the Financial Resolution and Deposit Insurance (FRDI) Bill, the All India Bank Employees Association (AIBEA) has said it is planning a strike if the Centre proceeds on the proposed legislation.

In a statement issued late on December 11, the AIBEA said: "The Bill has created widespread fear, apprehension and panic amongst the depositors that the government is contemplating to liquidate the banks and the deposits of the Banks will not be returned because of the bail-in clause of the Bill."

According to AIBEA, the Bill provides for setting up a new authority Financial Resolution Corporation (FRC) which will deal with liquidation and resolution of Banks Insurance and other financial institutions.

"This FRC will supersede the powers of RBI (Reserve Bank of India) and other agencies dealing with the problem at present. Deposit Insurance Corporation guarantees deposits upto Rs. 1 lakh per customer. This will be closed down and the FRC will decide the amount now," AIBEA said.

In addition, the FRC has power to liquidate any bank and permit to use the depositors' money to bail-in a bank. This provision is creating doubt and panic in the minds of every one, the statement said.

According to AIBEA, at a time when people are already worried about their money in the banks due the huge bad loans and consequent write off, loss of revenue, losses being incurred by banks, the government instead of assuring the people about safety has chosen to bring this FRDI Bill which deals with possible liquidation of banks.

The bank union spoke of stringent measures to recover the huge bad loans from big corporates and other defaulters.

The AIBEA said the question of bail-in does not arise in Indian situation as banks under liquidation are general merged with stronger banks.

Print Rate this article:
No rating

Number of views (253)/Comments (0)

rajyashree guha


Other posts by IANS
Contact author

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free