Bill on financial service providers referred to joint panel

A bill providing for a resolution framework to deal with bankruptcy situation in banks, insurance companies, and financial sector entities was on Thursday referred to a joint committee of Parliament.

The Financial Resolution and Deposit Insurance Bill, 2017, was referred to the joint committee of the two houses after it was introduced in the Lok Sabha by Minister of State for Finance Arun Ram Meghwal.

Some opposition members however questioned the need to send the bill to the joint committee. 

Bhartruhari Mahtab of the Biju Janata Dal accused the Centre of having a hidden agenda on the matter.

Trinamool Congress MP Saugata Roy said the process of getting the bill scrutinised by the Standing Committee should not be given a go-by. 

The bill`s enactment will pave the way for setting up of the Resolution Corporation which seeks to protect the stability and resilience of the financial system, protect consumers, besides protecting public funds to the extent possible. 

The government has already enacted the Insolvency and Bankruptcy Code, 2016, for insolvency resolution of non-financial entities. 

The bill complements the code by providing a resolution framework for the financial sector.