Modi government's law will come in 'permanent ban', millions of rupees in your account ...
During the tenure of the Modi government, several big decisions have been taken to make big impact on the financial world. It includes the payment of millions of rupees in government treasury to impose Goods and Services Tax (GST) under the concept of Forest Nation One Tax (GST) and to eliminate the crisis of NPAs of banks, to stop 86 percent of currency communications being circulated in the country and to start new monetary communication instead. . In this order, the Modi government is making more law in the banking system, the effect of this is not only on the banks, but in the savings bank account, one consumer will remain under the law, and this law will not end there any permanent complimentary prohibition. A new structural structure will be raised.
What is the new law?
The Central Government is going to present the Financial Review and Deposit Insurance Bill (FDRI Bill) 2017 to be presented in Parliament during the upcoming Winter Session. Due to the considerable majority in both the houses of Parliament, this bill will easily go through and become a new law. Prior to this, the bill was introduced in the Parliament during the monsoon session of the Central Government and it was then sent for recommendation to the Joint Parliamentary Committee. Now again, the central government will present the proposal of a new bill, in view of the recommendation of the Joint Parliamentary Committee.
Why is this new law necessary?
This new law, prepared by the central government, will prepare a new structure of debt relief for both government and private banks, insurance companies and other financial institutions. The Central Government claims that this law will result in a landmark reform of the financial sector after banking and insolvency codes in the country, recapitalization plan of government banks and foreign investment in the insurance sector.
How will this law change your bank?
The new law of the central government will eliminate the existing laws, Deposit Insurance and Credit Guarantee Corporation. At present, your money is guaranteed in different banks by this law. An important provision in this law is that if a bank declares bankruptcy in the event of a sickness, then the bank's customers will have to repay up to one lakh rupees for deposits. Therefore, this law presents the country's current banking system as the safest and most trusted.
Because of this safe banking system, customers of banks in the country are always confident in the bank that their money will never be able to sink. The government gives guarantees deposits to the government even after a bank lapses.
New Resolutions Corporation
But by the new law provision will be made where the assumption here will be completely lost. A new resolution corporation will be set up under the Finance Ministry to remove the old law. At present, the Reserve Bank had to assess the bank's financial position and advise him to step out of financial crisis. But after passing the FDR law, a new resolution corporation would be doing this work.
The most dangerous provision of the new law: permanent prohibition
At present, banks are given a bailout package for the financial crisis in the country. The bailout package is given by the central government from its own treasury and by sharing the bad loans in the corporate sector, the bank, which has been forced to buy the bank, again aims to rebuild with the bailout package. Provision has been made under the FDI Act now that the bailout space can now be used to take advantage of the bank's bail-in.
Thus, once the problem of banks' NP is concerned, a new resolution corporation will decide whether the money can be withdrawn by the customer in the bank's deposited money and some money can be transferred to the bank's NPA. For example, at present you can withdraw as much money as you want when you want one lakh rupees in the savings account, but the new government will decide by the new corporation that how much money the customers are allowed to pay during the economic crisis and how much of their savings the banks Use to reduce bad loans.
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During the tenure of the Modi government, several big decisions have been taken to make big impact on the financial world. It includes the payment of millions of rupees in government treasury to impose Goods and Services Tax (GST) under the concept of Forest Nation One Tax (GST) and to eliminate the crisis of NPAs of banks, to stop 86 percent of currency communications being circulated in the country and to start new monetary communication instead. . In this order, the Modi government is making more law in the banking system, the effect of this is not only on the banks, but in the savings bank account, one consumer will remain under the law, and this law will not end there any permanent complimentary prohibition. A new structural structure will be raised.
What is the new law?
The Central Government is going to present the Financial Review and Deposit Insurance Bill (FDRI Bill) 2017 to be presented in Parliament during the upcoming Winter Session. Due to the considerable majority in both the houses of Parliament, this bill will easily go through and become a new law. Prior to this, the bill was introduced in the Parliament during the monsoon session of the Central Government and it was then sent for recommendation to the Joint Parliamentary Committee. Now again, the central government will present the proposal of a new bill, in view of the recommendation of the Joint Parliamentary Committee.
Why is this new law necessary?
This new law, prepared by the central government, will prepare a new structure of debt relief for both government and private banks, insurance companies and other financial institutions. The Central Government claims that this law will result in a landmark reform of the financial sector after banking and insolvency codes in the country, recapitalization plan of government banks and foreign investment in the insurance sector.
How will this law change your bank?
The new law of the central government will eliminate the existing laws, Deposit Insurance and Credit Guarantee Corporation. At present, your money is guaranteed in different banks by this law. An important provision in this law is that if a bank declares bankruptcy in the event of a sickness, then the bank's customers will have to repay up to one lakh rupees for deposits. Therefore, this law presents the country's current banking system as the safest and most trusted.
Because of this safe banking system, customers of banks in the country are always confident in the bank that their money will never be able to sink. The government gives guarantees deposits to the government even after a bank lapses.
New Resolutions Corporation
But by the new law provision will be made where the assumption here will be completely lost. A new resolution corporation will be set up under the Finance Ministry to remove the old law. At present, the Reserve Bank had to assess the bank's financial position and advise him to step out of financial crisis. But after passing the FDR law, a new resolution corporation would be doing this work.
The most dangerous provision of the new law: permanent prohibition
At present, banks are given a bailout package for the financial crisis in the country. The bailout package is given by the central government from its own treasury and by sharing the bad loans in the corporate sector, the bank, which has been forced to buy the bank, again aims to rebuild with the bailout package. Provision has been made under the FDI Act now that the bailout space can now be used to take advantage of the bank's bail-in.
Thus, once the problem of banks' NP is concerned, a new resolution corporation will decide whether the money can be withdrawn by the customer in the bank's deposited money and some money can be transferred to the bank's NPA. For example, at present you can withdraw as much money as you want when you want one lakh rupees in the savings account, but the new government will decide by the new corporation that how much money the customers are allowed to pay during the economic crisis and how much of their savings the banks Use to reduce bad loans.
Read the original source
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