Skip to main content
Sujai Adithya
Business Development and Banking & Financial Services Expert
Asked a question last year

What are the features of the FRDI Bill?

Where am I?

In Safejob Community you can ask and answer questions and share your experience with others!

Sujai Adithya
Business Development and Banking & Financial Services Expert

Features of the FRDI Bill:

  • A framework to resolve bankruptcy in banks and other financial firms will be created.
  • Customers of the banks and financial firms will be protected in the times of financial distress.
  • Public money will be used to bail out the distressed financial firms or banks.
  • Banks and financial firms will be disciplined in the times of crisis.
  • Time and cost of dealing with the financial crisis will be minimized to one year but it may exceed one year in extreme conditions.
  • It will also provide the necessary instruments for dealing with crisis events.
  • A resolution corporation will be set up to strengthen the stability and resilience of the entities in the financial sector.

 

  • Financial Resolution and Deposit Insurance (FRDI) Bill, 2017 seeks to protect and enhance the depositors’ existing rights.
  • It also brings in a comprehensive and efficient resolution regime for financial firms.
  • The FRDI Bill was introduced in the Lok Sabha on August 10, 2017.
  • The bill is similar to the Insolvency and Bankruptcy Code, 2016.
  • It also aims to inculcate discipline among financial service providers in the event of financial crises, by limiting the use of public money to bail out distressed entities.
  • Once enacted, a resolution corporation will be setup to strengthen the stability and resilience of the entities in the financial sector.