Centre to protect public deposits

Finance Minister Arun Jaitley recently mentioned that the Centre will fully protect public deposits in financial institutions while hinting at openness to changes in the proposed Financial Resolution and Deposit Insurance (FRDI) Bill.

Jaitley said the Centre’s Rs. 2.11 lakh crore capital infusion plan in banks was to strengthen banks and there was no question of any lender failing. If any such situation arises, the Centre will “fully protect” the deposits made by customers, Jaitley said, adding “the government is very clear about it”.