All India Bank Employees Association (AIBEA) has threatened to go on strike if Financial Resolution and Deposit Insurance (FRDI) Bill is not amended to safeguard interests of depositors even as the government has assured that it will protect rights of customers.
"Our banks deal with huge public money and total deposits in the banks today are more than Rs 106 lakh crore. Unlike the American and other western banks which are run by shareholders and investors' money, banks in India are run with people's hard-earned savings kept as deposits," AIBEA said in a statement.
Hence, the safety of people's money should be the top priority, it said.
The government which brought in the Financial Resolution and Deposit Insurance (FRDI) Bill 2017 with 'bail-in' clause has created panic amongst the people about the safety of their deposits in banks, it said.
"AIBEA has already appeared before the Joint Parliamentary Committee and urged upon them to reject the Bill. It is contemplating a strike action against this unwarranted FRDI Bill, if the Government proceeds further (with the Bill)," it said.
Seeking to allay concerns of depositors over provisions of a draft law, Finance Minister Arun Jaitley on Monday said the government will fully protect public deposits in financial institutions even as he hinted at openness to changes in the proposed FRDI Bill introduced in the Lok Sabha in August this year.
It is currently undergoing scrutiny by a joint committee of Parliament.
The so-called "bail-in" clause in the draft legislation has been commented upon by experts as of bringing potential harm to deposits, in the form of savings accounts.