Fresh ammo for Opposition in Gujarat elections, accuse Modi govt of risking public money in banks

Opposition leaders, taking the Gujarat election campaign a notch higher, have accused the Modi government of making savings in bank accounts unsafe by allowing banks to use the deposits for recapitalization in case of a financial setback.

While the national bank employee unions' threat to go on strike only added to the panic, PM Modi and Finance Minister Arun Jaitley quickly came forward to reassure the people that they will “never put their hard-earned money at risk”.

It was during the Parliament’s Monsoon Session that the Financial Resolution and Deposit Insurance (FRDI) Bill was introduced and has gone through rigorous public debates since then. A joint Parliamentary committee is currently studying the draft Bill and is expected to come out with a report, following which it is likely to be taken up for legislative approval in the Parliament.

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