Privatization of banks with FSDR bill

FRDI bill of 2017 which was widely opposed by bankers is being reintroduced as FSDR (Financial sector Development regulation and Resolution bill 2019) bill : it will destroy both fixed depositors n the banks bcz banks will be bailed out with fixed depositors' money rather than Govt taking the responsibility.

86% of the NPA is that of the corporate, if written off the corporate will be benefited destroying the small depositors' money. Banks will anyway be destroyed.

FSDR bill is meant to handover the Banks to Ambani-Adani. Once done, it will affect all the other baking Acts, no requirement of parliamentary approval. Rise up to oppose another crisis.

It has roots to 2008 banking crisis in US. US federal reserve. G7 countries created a 'Financial stability' board. Idia is part of it. A note key attributes with some resolutions.

In India the banking sector is dominated by public sector banks, nationalized in 1969. They adhered to all govt regulations. No bank has gone bankrupt so far. Depositors have been safe.

The resolution authority can write-off loans, dissolve terminate contracts, modify liabilities and set up bridge institutions. Corporates are given loans at cheap rates. Modify liabilities will affect the right to withdraw money by the depositors when he/she wants. what about senior citizens?

Why resolution authority when RBI is there? This will control RBI rather than solving the crises. It will interfere with banks, and can hand them over to private bodies, after the bridge institutions will handle them for a year.

98% population has accounts, but with the introduction of bank charges, whatever little they have will be forfeited. So what use is having the account? This will lead to financial exclusion.

This regulatory authority will handover banks to Ambani Adani on the slightest pretext. Today one needs to go to the parliament to get any changes done in the nationalized Acts. But with the resolution authority in place, it will amend all bills (the baking regulation Act, the IRDA act etc). No more going to the parliament. No majority required in Parliament.

It will help the corporates which are looting the banks with NPA who will take over. The biggest danger. Chilli n Peru have suffered.

Our country is dependent o small savings. 78% of the GDP comes from this small savings. Without that the economy of the country will suffer. We are creating our own financial crisis.

"Government has no business to be in business". The prime minister has been saying. It is a precursor to hand over the public sector banks to Ambani-Adani? Still 26% is still living below poverty line who remain marginalized. Only 1% are getting better by defaulting Loans, and ruining banks because their NPA is written off. So far 4 lakh crores of their money has been written off. That, had it been recovered, could have established at 5 trillion economy.

The Prime minister, somehow misses the point. Correct the policy framework rather than having sovereign control is the only way out

.

,