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FSDR Bill

drsundaram

Active member
Should senior citizens join others to oppose passing of FSDR bill?
This looks scarry, where are we heading? If money is not safe in Banks then where can one keep money ?
68% of total bank deposits are from Senior citizens and they will have no safety net if banks collapse. Arguments put forth to oppose the bill appear convincing.
Can someone knowledgeable comment?
Please do watch it.
Or should we just take such stories with a bucket of salt?. Are they written purposefully to make you sit up?. It is like saying that you can lose everything when an earthquake hits you. Certainly yes. But the probability is too remote for you to start shaking now. Of course you can build quakeproof houses but there is no guarantee even there. In fact there is no guarantee that anyone will be alive the next moment and yet we carry on and we have to live our life whatever the risk.
Let us stay cheer up! what else option??
 

moorthy44

Member
Sir,

As for as I know, each coin has two sides...

Every legislation has both merits and demerits....

Now, I stumbled upon the following article published in Economic Times which I am sharing here

How to make the FRDI bill more effective

The new Act should consider keeping its ripple effects on other laws to the minimum.

There is now talk of the possibility of the Bill — especially the aspects related to the banking sector — with the recent Financial Stability and Development Council (FSDC) meeting last month headed by finance minister Nirmala Sitharaman reportedly discussing the FRDI Bill. So, it is an appropriate time to evaluate different aspects of the once-considered, once-removed Bill, beyond the already much-discussed bail-in provision, and suggest a few modifications.

The Bill does have several merits . For the first time in the history of Indian financial laws, a Bill details the resolution of troubled financial institutions.

Depositors, obviously, had earlier rejected the ‘bail-in’ provision. But they did realise that banks, like other businesses, are failure-prone, and that bank crises can jeopardise their savings. Such sensitisation will enhance depositor discipline on banks, besides improving one’s own financial planning. There are demerits of the FRDI Bill.


Read more at:

----------------------------------------------

This Government which is aiming at good Governance will certainly look into the aspects of demerits and consider the representations and plights of common man before Introduction.

There are reports about both merits and demerits.

Of course, let us cross the Bridge when it comes. Meanwhile, hope someone knowledgeable comes with expert opinion on this Bill.

We also need more information/opinion about this Bill from financial experts...a clear and an unbiased analysis....taking into consideration the interest and well being of the common man including senior citizen and the safety of their hard earned money too. :)
 
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drsundaram

Active member
thanks Shri Moorthy 44 sir if the apprehensions as envisaged in the utube [ i had sent] by the experienced banker are allayed and if the bill is for citizen's support no issue at all . Is it ? .
 

moorthy44

Member
thanks Shri Moorthy 44 sir if the apprehensions as envisaged in the utube [ i had sent] by the experienced banker are allayed and if the bill is for citizen's support no issue at all . Is it ? .
It is reported that, details of the Bill are NOT SPELT OUT. While so, is it not premature to judge/discuss the impact, influence, effects of the Bill without knowing the details.
Even the financially savvy enough veterans are yet to understand the good or bad points of this Bill.

Further, it is reported that for the FSDR to become operational, it envisages amendments to several statutes. These include: amendments to the Insolvency & Bankruptcy Act, The Companies Act 2013, Pension Fund Regulatory and Development Authority, Payment and Settlement Systems Act, the Multi-State Cooperative Societies Act, Reserve Bank of India Act, Insurance Act, National Housing Bank Act, Export-Import Bank of India Act, Banking Companies (Acquisition and Transfer of Undertaking) Act, the Central Goods and Services Tax Act, Regional Rural Banks Act, General Insurance Business (Nationalisation) Act, Income Tax Act, Customs Act, Securities Contracts Regulation Act, Life Insurance Corporation Act and State Bank of India Act, among others.

There are also reports to the effect that after multiple assurances provided by the government, this bill might get tabled in the Parliament. So, it would be worth noticing how the government will omit out some controversial provisions of this bill in order to keep the bank and depositors’ safety at the highest pedestal.

By the way what are our MPs, Opposition Parties whom we voted sent them for Delhi Parliament…are doing? Will they not object if it is against the safety of the depositors….??

Let us wait and hope for good. :)
 

n4forum

New member
I hope govt raises deposit insurance limit to average real estate price for today standard. When people guarantee banks to payback loan of 60- 100 laks, why not banks cannot do same ? If govt doesn’t do it, it will anyway affect bank liquidity anyway as people will lost confidence and all banks indirectly will become like NBFC.
 

drsundaram

Active member
It is reported that, details of the Bill are NOT SPELT OUT. While so, is it not premature to judge/discuss the impact, influence, effects of the Bill without knowing the details.
Even the financially savvy enough veterans are yet to understand the good or bad points of this Bill.

Further, it is reported that for the FSDR to become operational, it envisages amendments to several statutes. These include: amendments to the Insolvency & Bankruptcy Act, The Companies Act 2013, Pension Fund Regulatory and Development Authority, Payment and Settlement Systems Act, the Multi-State Cooperative Societies Act, Reserve Bank of India Act, Insurance Act, National Housing Bank Act, Export-Import Bank of India Act, Banking Companies (Acquisition and Transfer of Undertaking) Act, the Central Goods and Services Tax Act, Regional Rural Banks Act, General Insurance Business (Nationalisation) Act, Income Tax Act, Customs Act, Securities Contracts Regulation Act, Life Insurance Corporation Act and State Bank of India Act, among others.

There are also reports to the effect that after multiple assurances provided by the government, this bill might get tabled in the Parliament. So, it would be worth noticing how the government will omit out some controversial provisions of this bill in order to keep the bank and depositors’ safety at the highest pedestal.

By the way what are our MPs, Opposition Parties whom we voted sent them for Delhi Parliament…are doing? Will they not object if it is against the safety of the depositors….??

Let us wait and hope for good. :)
pl refer to the last para of your esteemed reply . if the MPs etc whom we have elected or they have got elected by hook or crook are fair and render justice to the electorate/ citizens whom they have elected why we talk so much.? Simply because they had gone there for sheer selfishness we do nurture these worries Can i say like this?......
 

moorthy44

Member
pl refer to the last para of your esteemed reply . if the MPs etc whom we have elected or they have got elected by hook or crook are fair and render justice to the electorate/ citizens whom they have elected why we talk so much.? Simply because they had gone there for sheer selfishness we do nurture these worries Can i say like this?......
Sir,

What to say......?

We need to pat on our back for selecting or electing such hook or crook knowing pretty well that they won't deliver the goods and won't be fair and render justice to the electorate/ citizens.

I think we are also one way responsible for this plight. When we question the Government, why not these hook or crooks??

What is the media doing...?

They are agitations, processions, demonstrations, riots everything going on against certain Acts introduced by the Government and we are seeing all this with our naked eyes. There are States approaching the Court seeking justice. We do have lot of resources at our disposal to stop, object or even reject or to bring about changes, amendments, etc

We have lot of Asthirams to use.... Let us wait till the unanswered questions are answered.

The Government enforced ban on the event Jallikattu. But through agitations, we overturned the Ban. This is history.
 
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Prima facie, it seems to me that too much power is sought to be vested in a single authority, which is a bit frightening. We may argue that even as of now, our deposits are protected only to the extent of Rs.1 lakh. However people have relied on the RBI for protection because, it is one of RBI's mandate to protect depositors. The new proposed Authority, it appears, would essentially have super- powers to ensure 'Resolution of troubled Financial entities'. This implies the primary objective of the proposed authority would be 'Resolve' bad banks and depositor's concerns might take a back seat.
 

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