oppn parties Bank Deposits Are As Safe As Before

News Snippets

  • MS Dhoni decides to take a two-month break, will skip West Indies tour but will not retire
  • Phagu Chauhan is the new Governor of Bihar while Ramesh Bais has been appointed as that of Tripura
  • Governors: Anandiben Patel shifted from Madhya Pradesh to Uttar Pradesh and Lalji Tandon from Bihar to Madhya Pradesh
  • Naga talks interlocutor RN Ravi appointed as Governor of Nagaland
  • Noted lawyer Jagdeep Dhankhar appointed as new Governor of West Bengal
  • 84 NDRF teams have been despatched to 23 states to tackle the flood situation
  • Three persons lynched in Bihar after being accused of cattle theft
  • Delhi police seize a consignment of 1500 kgs of heroin and busts a cartel of Afghanistan-Pakistan narcotics dealers with links to the Taliban
  • Supreme Court gives 9 more months to complete the Babri Masjid demolition case trial
  • Priyanka Gandhi not allowed to meet the families of the dead in the Sonabhadra firing, arrested
  • ICC inducts Sachin Tendulkar in [email protected]@@s Hall of Fame
  • Stock markets bleed for the second day. Sensex crashes 560 points
  • S Jaishankar, Minister of External Affairs, says Pakistan should release and repatriate Kulbhushan Jadhav immediately
  • Karnataka Governor Vajubhai Vala asks the Speaker to hold the trust vote latest by 1.30 pm today
  • The Government sends a list of 24 questions to mobile app company that runs video app TikTok seeking answers for anti-national and obscene content carried on the platform
Former Delhi CM and senior Congress leader Sheila Dikshit dies following a cardiac arrest. She was 81
oppn parties
Bank Deposits Are As Safe As Before

By Sunil Garodia

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator. Writes for a number of publications.
The Left-Liberal establishment is working with a vengeance to misguide people on social media without understanding the facts of important financial bills or economic reforms. The idea is to create a panic. Having looted the people over the years through various scams involving mind-boggling figures, having built up a comfortable and paying network of crony capitalists and having looted the poor by allowing large scale pilferage of anti-poverty schemes and vanishing of their money through chit funds which gave them kickbacks, the pot-bellied Congressmen and their Leftist and regional friends are dismayed that the supposedly pro-rich NDA government is plugging all loopholes to generate black money.

Take the example of alarming messages being shared on social media regarding the ‘bail-in’ clause in the proposed Financial Resolution and Deposit Insurance Bill (FRDI) 2017. Without understanding the history of deposit insurance in India and without reading the supporting sub-clauses to sec 52, the people are being told that first Modi demonetized some currency notes and now he wants to take away the money in your bank accounts. Nothing can be further from the truth. The money of the depositors will be even more secure after the FRDI is enacted.

As on date, depositors’ funds in bank accounts are guaranteed by deposit insurance of Rs 100000 only. This figure was enhanced from Rs 1500 in 1993. So, effectively, the Congress and its Leftist allies had allowed people comfort only till that amount. But even this guarantee was never invoked as the practice in India is to merge failing banks with other banks to protect customer interest. No bank has ever been allowed to go under and no depositor has lost his money till date. Instead, depositors have lost huge amounts of money in schemes floated by dubious chit funds that had political backing or at least who managed to run their operations by paying off influential politicians across the political spectrum.

The purpose of the FRDI is to streamline financial resolution and allow banks to recover their money. This bill, along with the Bankruptcy Act, will introduce a semblance of responsibility and accountability in the Indian financial system, something that has not been achieved in the long periods of Congress rule, not even during the reforms in the 1990s. Maybe it was not done on purpose as the Congress and its Leftist allies were always looking for ways to siphon out funds from the system and anything that introduced accountability would have thrown a spanner in the works!

So, instead of raising false alarms, critics would do well to first understand the provisions. In any case, the draft bill is going to be vetted by a parliamentary sub-committee that is made up of MPs from most parties who understand, or have people who can explain the intricacies to them, financial terms and the implication of ‘bail-in.’ If it is against the interests of the people, one is sure the committee is going to suggest amendments. Rumour mongering, of the kind being indulged in against the FRDI, is not good for the country.