The Bank Employees’ Federation of India, Kerala, has demanded that the Union government must recall the Financial Resolution and Deposit Insurance Bill, now under the consideration of Parliament.
A statement issued by the bank union said that the Bill contained several suggestions that would badly affect the banking sector, including cooperative banking.
The Bill aimed to take banks away from the control of the Reserve Bank of India, the statement added.
A proposed law which the government claims will help contain the impact of a failing bank is also designed to protect the rights of depositors, Finance Minister Arun Jaitley has said to allay worries that a “bail-in” provision allows depositors’ money to be used by weak institutions to pay out of a total collapse. The Financial Resolution and Deposit Insurance (FRDI) Bill has been referred to a joint committee of parliament that will give its report in the winter session starting December 15.