FRDI Bill: Irrelevant and unfair

The FRDI wants to grab the money of creditors and depositors above a limit, when banks or insurers are caught in a financial tsunami, for no fault of theirs

The Indian justice system offers us a steady source of bizarre solutions. But we haven’t yet come across a judge telling the creditor of a failed insurance company: “Forget your money. Here, take some shares of the insurance company in exchange.” Or to a depositor of a bank that has gone belly up: “Forget your life savings in the bank that you had trusted for several decades. Here, take a few shares of the bankrupt bank instead. You will make money if the shares eventually go up.” But this is exactly what the justice system will deliver because this is