TNPSC Current Affairs June 2017
Union Cabinet has given its nod the proposal to introduce a financial Resolution and deposit insurance bill, 2017, which will provide for comprehensive resolution framework for specified financial sector entities to deal with bankruptcy situation in banks, insurance companies and financial sector entities
Features of Financial Resolution and Deposit Insurance Bill
- It aims to instruct discipline among financial service providers in the event of financial crises by limiting the use of public money to bail out distressed entities.
- It gives comfort to the consumers of financial service providers in financial distress.
- It would help in maintaining financial stability in the economy by ensuring adequate preventive measures also provide necessary instruction in dealing with crisis.
- The Bill aims to strengthen and streamline the current framework of deposit insurance for the benefit of a large number of retail depositors.
- It also seeks to decrease the time and costs involved in resolving distressed financial entities