West Bengal Chief Minister Mamata Banerjee has written to Union Finance Minister Arun Jaitley, saying that her government will continue to oppose the proposed Financial Resolution and Deposit Insurance (FRDI) Bill as “it is against the interest of common depositors”.
“My government remains committed to the cause of common men and women of our country and will continue to strongly oppose the bill as it is against the interest of common depositors,” Banerjee wrote on Thursday in her second letter to Jaitley on the issue.
“I am simply unable to accept the argument that the ostensible purpose of the Bill is to protect the interest of the depositors… The Bill proposes to introduce a draconic provision of bail-in which has the potential of endangering the hard-earned deposits of the public,” she said.
Claiming that her concerns over certain provisions in the bill had been “brazenly ignored” by the department concerned in the response letter, Banerjee said the trend of inadequate recapitalisation of public banks did not support its assurance.
“The letter of minister of the state has given assurance that the government remains committed to adequately capitalise the public sector banks. The fact is that inadequate capitalisation of the banks in the last few years does not support his assurance,” she said.
“It is amply clear that the real intent of the Bill is to bail out one section of the vested interest, who have siphoned off the loans given to them by the banking institutions, rather than protect the interest of the depositors,” Banerjee alleged.
In her letter to the Finance Minister in December last year, Banerjee had claimed that the FRDI Bill could forcibly convert the deposits of common people into equity shares, change the nature of deposits to change the interest rate, impose a stay on withdrawal of deposits before maturity and put a moratorium on payment of interest.