FRDI invites Oppn wrath

Ahmedabad: The upcoming winter session is expected to be stormy as the Congress is all set to corner the government over the Financial Resolution and Deposit Insurance (FRDI) Bill, which will allow the bankers to use depositors’ money to stay afloat if a bank fails.

The Parliament session will start on December 15 and conclude on January 5. The Union Cabinet chaired by Prime Minister Narendra Modi had approved the proposal to introduce a FRDI Bill in June this year. The bill was tabled in Lok Sabha in August and the Joint Committee of Parliament is expected to submit its report in the upcoming winter session of Parliament.

Talking to reporters here Delhi Congress President Ajay Maken said, “The government had introduced this bill in Monsoon session and they will try to pass it in this session. The Congress party will oppose its passage in Parliament. This bill is being brought in to save the banks which are under pressure of loans taken by the few corporates.” The Congress leader also said there will be need to amend 22 laws in order to get it passed and the guarantee on sum assured will be removed.

After it comes into force, institutions like Parliament, RBI, SEBI, IRDA and others would get weakened. He also alleged that Non-Performing Assets have risen sharply under the NDA government. After failing to recover loans from the corpoartes, the banks are being provided relief. Maken added that the NPA was at 3.84 per cent under UPA government while it rose to 12.47 per cent. There are 25 per cent NPAs on 12 corporates.