write a short note on the financial resolution and deposit insurance bill
Answers
The financial resolution and deposit insurance bill (FRDI), 2017 has been approved by Prime Minister Narendra Modi. This bill shares similarity with Insolvency and Bankruptcy Code, 2016 which was enacted in May, 2016. The aim of FRDI to resolve an issue of companies who are bankrupted but the condition is its validated for only financial sector.
Explanation:
The Union Cabinet has approved the financial resolution and Deposit Insurance bill in 2017, and this was decided and headed by the Prime Minister Narendra Modi. This bill is similar to Insolvency and Bankruptcy Code which was approved in May, 2016. This bill provides comprehensive solutions to the financial sectors such as banks and insurance companies to make a framework to avoid bankruptcy.