Summary:
A bail-in provision in the proposed legislation could allow the use of depositor's money to bail out banks that are on the verge of bankruptcy, which the Congress views as "draconian and virtual dacoity" on bank accounts. Panaji: Expressing concern over the bail-in provisions which allow the cancellation of a bank's liability, Congress state president Shantaram Naik said that the Financial Resolution and Deposit Insurance Bill (FRDI) 2017, if passed, would be the third major economic blunder after demonetisation and Goods and Services Tax Act.The bill, which is currently before a joint select committee of Parliament, could spark anxiety among depositors who may choose to withdraw funds parked with financial institutions, Naik told reporters..