West Bengal CM Mamata Banerjee shoots off letter to finance ministry, slams FRDI Bill

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FRDI bill a draconian law will forcibly take away the hard earned life-savings of the common people, says West Bengal CM Mamata Banerjee.

West Bengal chief minister Mamata Banerjee has opened a new front against the Narendra Modi government, opposing the Financial Resolution and Deposit Insurance (FRDI) Bill which is likely to be placed during the ongoing winter session of the parliament.

Shooting off a letter to union finance minister Arun Jaitley on Saturday, Banerjee has called the proposed new legislation as the "biggest assault on the financial security of the poor and the middle class" in the country.

Demanding an immediate withdrawal of the bill, Banerjee wrote, "It appears that the Bill will forcibly take away the hard earned life-savings of the common people entrusted to the banks, for bailing out new section of vested interests, who have siphoned off the loans given to them by the banking system."

"This is tantamounting to cheating the depositors, for no fault of them. This, in my view, is grossly unfair and totally unethical," Banerjee added. Banerjee alleged that the banking system in India had failed in managing the sector on "sound financial principles and highest norms of transparency and probity".

"Now in order to cover up the failures and allow one section of the vested interests to go unpunished, the Government of India wants the common depositors o this country to forego their life-savings. This is really shocking and unacceptable. It is a travesty that the Government of India as the owner of the nationalised banks is now trying to replenish the eroded capital of the banks by forcibly taking away the small depositors' savings, instead of facing the crisis in the banking sector head on, from its own resources," she wrote in her letter.

Asking the centre to desist from enacting the "draconian" law, Banerjee wrote that farmers were apprehensive given their dependence on rural co-operative banks.