FRDI Bill 2017 is one of the newest additions to the laws of the Indian constitution. The Indian constitution is the longest written constitution ever and has more laws than any other country in the world. Almost the whole world is in awe of the bills that are recently being proposed in the Indian parliament.
Today the Indian Finance minister unveiled his propositions for a new bill in front of the Lok Sabha. The infamous bill is being given the name of FRDI. FRDI stands for Financial resolution and deposit insurance. It is one of the most controversial bills ever, so much so that it has gained international attention in just a few days.
Recently an even more controversial bill was passed in the parliament under the joint committee and that was the GST bill. Soon enough that too turned out to be passed with full support and came into existence from the 1st of July 2017.
In this year’s winter session the government has again proposed a very tacky bill that almost everyone is trying to escape from commenting about. There are still talks going on about the FRDI bill in the joint committee of the parliament again. The main goal of the bill that the government is saying is that it would protect the people’s money but many believe the contrary.
Almost every person is going through the dilemma whether they should be afraid of the FRDI bill being passed or happy as it goes through. The union ministry headed by the Prime Minister himself has passed this bill and the nation is divided. The people who have huge sums of money in their bank are especially worried about this as it is going to affect them the most if the bill goes through.
About FRDI Bill
The FRDI bill is going to be talked about thoroughly in the coming days over the winter session. The winter session is notoriously known for passing any bills that come into the talks. This is sole because many politicians are interested only in going home for their holidays and this can be done only if all the bills are passed or talked upon before being rejected or sent to the president for consideration.
Last year it was seen that the GST bill was passed with no or little votes against it. As we all know that GST upon being enacted was not perfect for the consumers of India. Same is going to be the case if the FRDI Bill is not discussed about in the parliament. If the bill gets passed without any discussion then it would mean that a half worked bill gets enacted upon and the public later pays the price for it.
The FRDI is being compared to the likes of the Insolvency and the bankruptcy code that was passed last years in 2016. The main aim of the FRDI is said that it is going to keep the money of the people safer but what they are not telling you is the real deal behind this bill. Through the FRDI the government aims to provide help to failing businesses of those who have declared bankruptcy. This is to ensure mainly that no business goes out of business. The FRDI bill mainly deals with companies that go bankrupt. The main subclass of businesses that the FRDI is going to overlook in the financial sector. The insolvency code act, on the other hand, would now be dealing with all the other types of sectors out there. This means that the FRDI bill is going to be overlooking all the companies in the financial sector, mainly banks and insurance companies.
What the FRDI Bill offers to the People
The main objective of the FRDI bill is to protect the users of the financial sector companies in the time of distresses. The main aim is to take your own money and give to others in times of financial distress. The agenda of the bill is quite difficult to understand for the common man. The bill also states that it is aimed at reducing any kind of financial distresses during times of tension and crisis in the country. Here are the main motives of the bill and what it aims to bring out in the country –
- The bill’s goal is to bring a positive change in the country and also discipline almost all the financial sector companies to be able to work out in times of any crisis.
- The bill also has a greater aim of helping out the people who invest by adding their money to banks and also by buying insurances and paying premiums etc.
- The goal is to strengthen the economy of the country even more by streamlining and strengthening the current framework of deposit related insurances for the people.
- The FRDI bill also has a hidden goal of minimizing the time and the costs that are involved in maintaining any kind of financial entities that are distressed.
- Once this bill is enacted a resolution corporation will be set up to strengthen the stability and resilience of the entities in the financial sector.
What Famous Financial Predictors Think about FRDI Bill
With the buzz being about the FRDI bill in the past few months many financial advisors and economists have come up with their own theories about the bill and what they believe this bill would bring out. Some. Banks are the most trustworthy place for Indians as over 90% of Indian population tend to save their money through Banks and very few enter the riskier financial investments like mutual funds. If the ‘bail-in’ clause within the FRDI bill continues, the failure of any kind of bank or other deposit-taking financial institution like the insurance company that comes under the purview of this law could wipe off the savings of depositors to save their company itself. Such a scenario is not in the interest of the depositors. Thus many have claimed it to be anti-people yet again.