Terming the FRDI Bill as "draconian", the Trinamool Congress (TMC) today said it will oppose it tooth and nail in the Parliament and launch a massive campaign against it in the state.
TMC chief Mamata Banerjee has already written to the Centre opposing the Financial Resolution and Deposit Insurance (FRDI Bill and demanded its withdrawal.
"The FRDI Bill is a draconian bill. It is a black law. The TMC will hit the streets against the bill. We will also oppose it in the floor of the Parliament. We will keep opposing until and unless it is withdrawn. Chief Minister Mamata Banerjee has already written a letter to the Centre opppsing it," TMC secretary general Partha Chatterjee told reporters after the party's core committee meeting today.
The decision was taken at the party's extended core committee meeting chaired by Banerjee.
Prime Minister Narendra Modi had said that the government is working to protect the interest of bank customers and their deposits, in a bid to scotch rumours regarding the proposed Bill.
Industry body Assocham has also said that experts felt the "bail-in" clause in the draft FRDI Bill, 2017 can potentially harm deposits in savings accounts.
The FRDI Bill proposes to create a framework for overseeing financial institutions such as banks, insurance companies, non-banking financial services companies and stock exchanges in case of insolvency.
The Resolution Corporation, proposed in the draft bill, would look after the process and prevent the banks from going bankrupt. It would do this by "writing down of the liabilities", a phrase some have interpreted as a "bail in".
The draft bill empowers Resolution Corporation to cancel the liability of a failing bank or convert the nature of the liability.
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