Ever since Prime Minister Narendra Modi stunned the nation by devaluing the high currency, people are wary of his every new move. Afresh, people in large number are reportedly emptying their deposits in banks fearing the new rumored law that Modi is about to bring into effect.
Union government has recently proposed a new bill – Financial Resolution and Deposit Insurance (FRDI) Bill 2017. While majority of people have no idea about what the bill is and what its impact will be, some messages circulating on Facebook and WhatsApp seem to have persuaded them to believe that govt. will use the people’s money deposited in banks.
Reports are emerging that people are flocking to banks and withdrawing their entire deposits with the fear of this new bill. Even though the bank managers try to convince them, account holders are reportedly arguing that they will once again deposit the money in bank if the circulating reports turn out to be mere rumors. To quote one example, a whopping Rs 6 Cr was withdrawn from just two banks in Warangal this week. More banks are facing similar situation but they are concealing the facts so as not to create panic among public, which could result in more people demanding for their deposits.
Meanwhile, Finance Minister Arun Jaitley on Thursday said in the Lok Sabha that govt. will protect money of all depositors in public sector banks and that there was no need to get panicked. The bill is currently being scrutinized by a joint parliamentary committee.
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