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6) The Financial Resolution and Deposit Insurance Bill, 2017 proposes a comprehensive resolution framework for specified financial sector entities and service providers, to deal with bankruptcy. Discuss.(250 words)

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development and employment.

6) The Financial Resolution and Deposit Insurance Bill, 2017 proposes a comprehensive resolution framework for specified financial sector entities and service providers, to deal with bankruptcy. Discuss.(250 words)

The hindu

Why this question

Besides corporate banks, many non-financial institutions are also facing the problems regarding financial resolution. The FRDI bill will complement the Insolvency and Bankruptcy Code in order to expedite the resolution process comprehensively.

Key demand of the question.

The question wants us to write in detail about the salient provisions of the FRDI bill and bring out how it will provide a comprehensive resolution framework to deal with specified financial sector entities and SPs.

Directive word

Discuss- This is an all-encompassing directive which mandates us to write at length about the key demand of the question and all related and important aspects. The purpose is to address the key demand of the question and present a complete picture of the issue.

Structure of the answer

Introduction– write a few lines about the objectives and the need for the FRDI bill. E.g to give comfort to the consumers of financial service providers in financial distress; maintenance of financial stability during a crisis etc.

Body-

 

  • Mention the service providers and Discuss in points the salient provisions of the bill and how it will provide a comprehensive resolution framework. E.g Bill lists 11 categories of institutions which would come under the definition of specified service providers; what are the provisions for these SPs; Resolution Corporations; its powers and functions.
  • Discuss how the bill complements the IBC, and thereby brings in a comprehensive legislation to deal with the issue of bankruptcy and financial resolution.

 

Conclusion– mention the shortcomings of the bill, if any and sum up your discussion in a fair and a balanced way.

CategoriesINSIGHTS