Telangana Pradesh Congress Committee (TPCC) has alleged that the BJP government at the Centre is trying to give corporate sector a backdoor access to savings of small depositors by introducing Financial Sector Development and Regulation (FSDR) Bill.
TPCC treasurer Gudur Narayana Reddy in a statement here alleged that the BJP government is trying to privatise the public sector banks through FSDR Bill so as to benefit a few corporates by granting them access to the hard earned money of common depositors.
He said of the nearly ₹ 130 lakh crore deposits, about ₹ 81 lakh crore are with public sector banks and approximately 68% of deposits belong to senior citizens.
“With the introduction of FSDR Bill and constitution of a new Resolution Corporation (RC) to monitor the health of financial firms like banks, the Reserve Bank of India (RBI) will lose its regulatory powers on banks,” he said. He claimed that the Resolution Corporation might terminate the contract depositors sign with a bank and they might lose their deposits fully or partially. “It will also have powers to write off debts of select few powerful corporates,” he said.
Originally, the BJP government had introduced Financial Resolution and Deposit Insurance (FRDI) Bill, 2017, which was later dropped due to a controversial ‘bail-in’ clause. However, now the same bill is being introduced with some modifications which are more dangerous than the original FRDI Bill, he said.
