1. Parliament Winter Session begins; FRDI Bill, insolvency, GST amendments on table

Parliament Winter Session begins; FRDI Bill, insolvency, GST amendments on table

The much-delayed Winter Session of the Parliament has begun on December 15, and the controversial Financial Resolution and Deposit Insurance (FRDI) Bill has been officially listed by the government for consideration and passage.

By: | Updated: December 15, 2017 4:30 PM
The much-delayed Winter Session of the Parliament is set to begin tomorrow and will last until January 5. (Image: Reuters)

Update: The Financial Resolution and Deposit Insurance (FRDI) Bill has been deferred by the Parliamentary standing committee. The Committee is likely to submit its report in the Budget Session.

The much-delayed Winter Session of the Parliament has begun on December 15, and the controversial Financial Resolution and Deposit Insurance (FRDI) Bill has been officially listed by the government for consideration and passage. Besides, The Goods and Services Tax (Compensation to States) Amendment Ordinance, 2017 and The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 are two other economy-related bills are also on the table.  As many as 25 pending bills and 14 new ones are set to be introduced in the Parliament; bills on Triple Talaq, backward class and transgender community are on the agenda.

Here are three key economy-related bills that are set to be introduced in Winter Session of the Parliament:

The Financial Resolution and Deposit Insurance (FRDI) Bill, 2017: The FRDI Bill establishes a Resolution Corporation to monitor financial firms, anticipate the risk of failure, take corrective action, and resolve them in case of such failure. The bill created controversy over its ‘bail-in’ clause, which will allow critically ill banks to restructure their liabilities, which are also depositors’ monies. The clause is being opposed by many sections of society, as it is understood to be putting depositors’ money in danger. The bill is currently with the Joint Parliamentary Committee for examination.

The Goods and Services Tax (Compensation to States) Amendment Ordinance, 2017: The Ordinance aims to increase the cap on the GST compensation cess levied on cars from 15 percent to 25%. The Ordinance amends the Goods and Services Tax (Compensation to States) Amendment Act, 2017, which was promulgated on September 2, 2017.

The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017: It particularly amends the definition of a resolution applicant and their eligibility and ineligibility. The Ordinance lays down 10 ineligibility criteria for a resolution applicant, few of them being, a willful defaulter identified by the RBI, a person who has been convicted with two years more years of imprisonment, an undischarged insolvent and person prohibited from trading in securities. The 2017 Ordinance amends the Insolvency and Bankruptcy Code, 2016.

According to a list compiled by think-tank PRS Legislative Research, some of the bills listed for consideration and passage at the session include Prevention of Corruption (Amendment) Bill, 2013, Surrogacy (Regulation) Bill, 2016, Transgender Persons (Protection of Rights) Bill, 2016, Muslim Women (Protection of Rights on Marriages) Bill, 2017 among others. The surrogacy bill prohibits commercial surrogacy and allows its altruistic form. The transgender bill, on the other hand, defines a transgender person, prohibits discrimination against them and prescribes penalties for certain offences. The Muslim Women (Protection of Rights on Marriages) Bill gives women from the community the right to seek maintenance from their husbands in case of triple talaq.

Story first published at 2.45 pm on December 15, 2017, on www.financialexpress.com

Get latest news and updates on Auto Expo 2018, check breaking news on Budget 2018, like us on Facebook and follow us on Twitter.

  1. S
    sundaram
    Dec 15, 2017 at 7:55 pm
    BJP Modi and Jaitly Govy is making all out efforts by issuing false statements and use supporters to write articles supporting the Wicked FRDI Bill, 2017, with the Bail-in clause that allow inefficient, unprofessional Banks to steal customers deposit to finance the Banks. Why the FRDI Bill fails to provide for investigating the reasons for NPA build-up and punish Bank Executives and the Directors of the defaulting Borrower Organization?. Because the investigation can lead to the identification of politicians who pressurised the Banks to lend without due diligence of borrowers credit worthiness. Unlike foreign countries, with the exception of Govt Servants, people after 60 don't ger ant social security benefits but had to live on income earned from their investment. People object the FRDI Bail-in clause mainly because it can make the investors 'pauper' overnigt and allow banks to lend irresponsibly favoring frauds.
    Reply
    1. vallala satyanarayana
      Dec 16, 2017 at 10:49 pm
      The proposed FRDI Bill 2017 will only protect fraudulent officials and politicians at the cost common mans' hard earned money.This will lead to total economic failure in the country. as a common men hesitates to deposit his savings in the Banks. Govt should withdraw this fraudulent bill immediately. this bill clearly indicated that BJP is blindly favoring corporate sectors at the cost of the national intrest
      Reply

    Go to Top