Depositors need not worry about losing money, say bankers

Some commentators have suggested that the Financial Resolution and Deposit Insurance Bill would take depositors' money to bail out banks and therefore, deposits are not safe

The proposed Financial Resolution and Deposit Insurance Bill would not worsen depositors’ plight from what is currently with the present protections in place, say bankers and experts. 

Some commentators have suggested that the Bill, currently being examined by a Joint Parliamentary Committee for tabling in the winter session of Parliament, would take depositors’ money to bail out banks and therefore, deposits are not safe. 

Under the Bill, there is a concept of “bail-in”, which would mean the bank’s own money and that of depositors can be used to bail the lender out, instead of waiting for the government to pump money into