Safety of bank deposits has vaulted into the centre-stage of public discourse for the first time since the minirun on savings at ICICI Bank in 2008. Selective reading or more fittingly, misreading of the Financial Resolution and Deposit Insurance (FRDI) Bill has led the general public to interpret the proposed legislation as draconian – one that would make fixed deposits the currency for future bank bail-ins.
Critical social media comments on the supposed use of depositors’ funds in the bailing-in of banks and the withdrawal of deposit insurance needed words of assurance from none other than the Prime Minister and the finance minister, who reiterated New Delhi’s commitment to “fully protect” public money. To be sure, the FR…
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