The Cabinet has ratified Financial Resolution and Deposit Insurance Bill, 2017 for its introduction in the Parliament. Objective of the Bill is to create a comprehensive resolution framework for the specified financial institutions in the country. The Bill if passed will create an insolvency regime for financial sector entities. Purpose of the Bill is to create a resolution regime for financial institutions when they face crisis without creating financial burden for the tax payers. The government has already enacted the Insolvency and Bankruptcy Code, 2016, for the resolution of insolvency in non-financial entities.
