The Financial Resolution and Deposit Insurance Bill, 2017 was introduced in the Lok Sabha.
Introduction of the bill in the Lok Sabha seeking to deal with insolvency of financial service providers is a significant step, Economic Affairs Secretary Subhash Chandra Garg said.
The Financial Resolution and Deposit Insurance Bill, 2017 was introduced in the Lok Sabha. It was soon referred to the 30-member committee comprising members of both the Lok Sabha and the Rajya Sabha. The committee is expected to submit its report during the next session.
The bill provides for establishment of a resolution corporation with powers relating to transfer of assets to a healthy financial firm, merger or amalgamation, liquidation to be initiated by an order of the National Company Law Tribunal.
It can also designate certain financial providers as systematically important financial institutions, the failure of which may disrupt the entire financial system, said the Statement of Objects and Reasons of the bill.
It also provides for creation of corporation insurance fund, corporation resolution fund and corporation general fund, Garg said in a tweet.