TMC to go all out in opposing FRDI Bill

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Terming the FRDI Bill as “draconian”, the Trinamool Congress (TMC) on Friday said it will oppose it tooth and nail in the Parliament and launch a massive campaign against it in the state.

TMC chief Mamata Banerjee has already written to the Centre opposing the Financial Resolution and Deposit Insurance (FRDI Bill and demanded its withdrawal.

“The FRDI Bill is a draconian bill. It is a black law. The TMC will hit the streets against the bill. We will also oppose it on the floor of the Parliament. We will keep opposing until and unless it is withdrawn. Chief Minister Mamata Banerjee has already written a letter to the Centre opposing it,” TMC secretary-general Partha Chatterjee told reporters after the party’s core committee meeting on Friday.

The decision was taken at the party’s extended core committee meeting chaired by Banerjee.
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Prime Minister Narendra Modi had said that the government is working to protect the interest of bank customers and their deposits, in a bid to scotch rumours regarding the proposed Bill.

Industry body Assocham has also said that experts felt the “bail-in” clause in the draft FRDI Bill, 2017 can potentially harm deposits in savings accounts.

The FRDI Bill proposes to create a framework for overseeing financial institutions such as banks, insurance companies, non-banking financial services companies and stock exchanges in case of insolvency.

The Resolution Corporation, proposed in the draft bill, would look after the process and prevent the banks from going bankrupt. It would do this by “writing down of the liabilities”, a phrase some have interpreted as a “bail-in”.

The draft bill empowers Resolution Corporation to cancel the liability of a failing bank or convert the nature of the liability.

Apart from the FRDI bill, the party leadership has asked all its MPs to raise its voice against the “anti-people policies” of the Centre in the Parliament.

In the meeting, Banerjee also formed a new core committee of party MPs which will decide on the issue of coordination with other opposition parties to decide on the TMC’s role in the Parliament on various issues.

“But this core committee of MPs has not been authorized to take any decision on its own. It would take all the decisions including party’s tactical line in the Parliament after discussion with party chairperson Mamata Banerjee,” a party leader said, on condition of anonymity.

TMC MP in Lok Sabha Sudip Bandopadhyay, Saugata Roy, Dinesh Trivedi and Rajya Sabha MP Derek O’ Brien are the members of the newly formed core committee of MPs.