The Finance Minister on Wednesday assured bank customers safety of their deposits in case the bank fails. In a tweet Jaitley said, "The Financial Resolution and Deposit Insurance Bill, 2017 is pending before the Standing Committee. The objective of the government is to fully protect the interest of the financial institutions and depositors".
The new bill proposes to further enhance present protection in some of the ways. Economic Affairs Secretary S C Garg said, principal guarantee for PSU Banks' depositors come from government ownership which also remains completely unaffected,"
The bill is tabled to arrange for financial service companies insolvency and constituting a corporation that is empowered to transfer assets to a more healthy firm, liquidation or amalgamation or merger.
The 'Statement of Objects and Reasons' of the bill also looks at labeling some of the financial institutions as systematically important failure of which have the capacity to disrupt the overall financial system of the economy.
With Inputs From PTI