Life insurance is destroying household savings in India. The regulators IRDAI and RBI are asleep at the wheel.
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RBI has been a poor regulator of retail customers. We are safer post FRDI than today. But given the fear, bail-in can be removed below a certain threshold. Or hard code consent in the Act.
The FRDI Bill is about putting a process in place for financial firms as an early warning system. The government does not want to eat your deposits.
Your deposits will be insured, just as they are today and there is an additional protection for depositors because the bail-in can be invoked, and your deposits be lost, only if you have given your consent to the bank when you signed the deposit forms. Bank deposits are the one true friend of a...
My #HT column on why the cynical commentary about the #FRDI Bill is wrong. Bank deposit insurance will continue and people are likely to be better off than they are today