Do not use innocent depositors’ money to bail in mismanaged banks #NoBailIn
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Our hard earned savings may be in danger!
The Finance Minister is going to table the Financial Resolution and Deposit Insurance (FRDI) Bill , 2017 in the winter session of Parliament next week.
This bill gives power to a government entity to use depositors money to save a bank on the verge of bankruptcy. This government entity can declare the bank doesn’t owe you any money though you have deposited your hard earned money with it.
Yes! Our hard earned money that we have saved for our children and for our future.
That’s why I have started this petition asking the Finance Minister, Arun Jaitley to remove the ‘Bail-in’ provision from the FRDI Bill.
Typically when a bank goes bankrupt, government uses the bail out option, in which the government uses tax payers money to pump in funds to give a breath of life to the bank.
Bail-in simply means a situation where the depositors’ money, beyond the deposit insured, could be used to pump in equity into the bank that is on verge of going bust.
It means that say you have 10 lakhs in your account and if the bank has trouble, it can reduce your 10 lakhs to 1 lakh (the maximum covered by the 1961 deposit insurance law)
The bank can also convert your account balance to a fixed deposit, repayable after five years.
In short an innocent person’s money could be forcibly used to pull out a bank from its financial woes. And we will not be able to do anything about it. We won’t even be able to challenge that in court!
If this bill goes through it will simply snatch the authority you have on your deposit if your bank goes bust.
We all know that bad loans are a result of wilful defaulters and many large companies.
Why should an innocent depositor be punished for no mistake of his? With the downturn in economy, the bad loans are rising which means our deposits are at bigger risk of being taken away from us.
The impact of this move will be borne by the common man.
We need to stop this move right now, before the bill is tabled in the Parliament.
Sign my petition to ask Arun Jaitley, the minister of finance to not let this bill pass with the ‘bail-in’ provision.
Today: Shilpa is counting on you
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