Bill to address bankruptcy in financial sector this session: Das

In order to address the issue of bankruptcy in the financial sector, government is likely to introduce a bill for resolution of insolvent financial firms during the current session of Parliament.

"The Bill relating to resolution of mechanism in relation to stressed assets of financial firms is going to be introduced in the second leg of the Budget session," Economic Affairs Secretary Shaktikanta Das said.

The second half of the Budget session will convene on March 9 and continue till April 13.

Speaking about protectionism, Das said, it is not sustainable in the long run and India will pursue its policy of openness that is free movement of goods, services and manpower.

"Protectionism in any form is not going to be sustainable in the long run considering where the world economy stands today considering the kind of interdependence which we have today between countries in term of requirement of skills and manpower," he said.

As far as India is concerned, he said, "We feel we should stick to our policy of openness, free movement of good, services and manpower and there should not be any restriction on this. Let us see how the situation plays out. I am sure the current trend which you see in many parts of the world may not be sustainable for very long."

With regard to the Payment Settlement Board, he said, the Finance Minister has also said the government will comprehensively review Payment Settlement Act.

"Whether therefore RBI should be a part of it or there should be an alternative mechanism to be built up, that is a matter the government will review, the government will consult the all stakeholders and take a considered call because we are aware a lot of payment takes place outside banking system," he said.