Banking & Deposit Security•Ministry of Finance•2017 → 2018

Financial Resolution and Deposit Insurance (FRDI) Bill, 2017

Status: Withdrawn

Category: Banking & Insolvency

Successor: DICGC Act Amendment 2021 (Deposit insurance limit raised to ₹5 Lakh within 90 days)

Executive Inquest Summary

“Withdrawn from Lok Sabha in August 2018 following massive public outcry and political resistance.”

1. Original Objective & Statutory Design

Instituted in 2017 by the Ministry of Finance to govern banking & deposit security. Aimed at addressing core governance challenges and structural priorities of its era.

2. Implementation Architecture & Frontline Delivery

Administered under Ministry of Finance through federal coordination, state-level departments, and executive oversight mechanisms.

3. Rationale for Action, Repeal or Replacement

Panic among bank depositors regarding Section 52 ('bail-in' clause), which citizens feared would use depositor funds to rescue bankrupt banks.

Subsequent Legal or Administrative Framework:

DICGC Act Amendment 2021 (Deposit insurance limit raised to ₹5 Lakh within 90 days)

4. Empirical Evidence & Official Documentation

Official parliamentary records, ministry gazette notifications, and statutory review committee assessments concerning Financial Resolution and Deposit Insurance (FRDI) Bill, 2017.

Institutional Memory & Enduring Lessons

What Should Be Retained, Redesigned, or Revived?

Status: Withdrawn. Replacement: DICGC Act Amendment 2021 (Deposit insurance limit raised to ₹5 Lakh within 90 days). Demonstrates the systemic lifecycle of public policy in India—highlighting how changes in state capacity, federal dynamics, and technological capability render legacy frameworks obsolete or require complete legislative overhaul.

Verified Administrative & Evaluation Sources

Official Gazette of India, Ministry of Finance
Parliamentary Standing Committee Reports (2018)
Law Commission of India & Ministry Transition Notes