After public concerns over 'bail-in' clause, govt to withdraw FRDI bill

The government has decided to withdraw the controversial FRDI bill and has informed about it to the Chairman of the parliamentary panel examining the proposed legislation.

Trinamool Congress leader Saugata Ray said in the Lok Sabha that Finance Minister Piyush Goyal has written to the Chairman of the Joint Parliamentary Committee, saying the government has decided to withdraw the Financial Resolution and Deposit Insurance (FRDI) Bill.

The Union Cabinet had earlier this month decided to withdraw the legislation in view of the concerns expressed by certain sections of people, including politicians, over the 'bail-in' clause, which they feared would harm the interest of depositors.

"Minister Piyush Goyal has written to the Chairman of the Committee saying that the government has decided to withdraw the bill... This is a victory of the opposition," Ray said while participating in a debate on Insolvency and Bankruptcy Code (2nd Amendment) Bill in the Lok Sabha.