FRDI Bill

[reality]

7 minutes ago, uttermost said:

telugu lo na 

ippudu nee deposit lu unnayi bank lo. 1lakh anuko. bank can make loans of upto 1crore using that deposit as security. by charging interest on these loans is how they make money. when the 1crore is paid back, the system cancels itself, and the bank is allowed to make another 1 crore loan using this same 1lakh as deposit.

what if the loaner doesn't return it. he doesn't even pay the interest. banks need a fresh capital infusion so they can stay in business. this is where govt comes in to provide that capital. capital infusion is not security, btw. and it can only be used to keep the bank functioning i.e. pay out their depositors, and make new loans if they can from whatever is remaining.

under previous regime, that 1lakh is insured, means banks can use anything beyond that 1lakh to keep their bank running. ideally when a bank reaches this situation, its byee byee for your money. Its not money that depositors can successfully claim (without a protracted lawsuit). 

under the new regime, even that 1lakh is not insured. this means banks can use depositors money to stay solvent, but its not what happens in real life, because there's heavy competition among banks for customers.

FRDI specifically mentions class of bonds and securities that will be bailed in by the govt in case of a failure, and banks will move towards that model, by investing in creating those kind of bonds. This will improve the cash flow in the economy. actually it'll improve credit growth.

 

Ee Modi gadi policies too cryptic ga unnayi...andhuke telugu lo cheppu ani adiga...

Endhi Cashflow ekkuva avudhha? Or people prefer to invest more than keeping liquid cash (uninsured) in banks?

It must be one or the other...

[aakathaai]

so 1 lakh thappa migithaadantha bokko bokkasya bokkebhyaha ana maata 

[uttermost]

4 minutes ago, Bhai said:

Basic ga oka resolution agency set up chestaru. finacial firms ni monitor cheyydaniki. vallu decide chesi rating istaru oka vela bail in cheyyala vadda ani.. bail in cheyyalsi vaste entha worst situation lo undo ani telchutaru. Insurance lo cover ayina eposits (up to 1 lakh) ku vachina nashtam ei ledu. avi alage safega untayi. Beyond 1 laks aa devudi daya meeda aadhara padi untayi.

endhukante ivi insurance lo civer kavu bank ni kapadadaniki veetini vadochu. 

Deeni valla labhalu entante.. Veellu financial firm health ni monitor chestaru.. Maro lehmann lantivi kakunda choostaru.

Bokka antava beond 1 L deposits ki devude dikku oka vela bank dobbite.  at the same ee agency aa 1 L limit ni inka tagginche adhikaram untadi appudu inka ekkuva customers ki assam train lo confirm ticket. 

 

adhi matter

https://myinvestmentideas.com/2017/12/what-is-financial-resolution-and-deposit-insurance-frdi-bill-and-how-does-it-impact-fixed-deposit-holders/

 

	In simple terms, FRDI bill helps to establish Resolution Corporation which would monitor financial firms and banks and suggests corrective action. In this process it can implement bail-in process where bank fixed deposits would be used to recover from financial problems of such firms / banks. The Corporation will also provide deposit insurance up to a certain limit, in case of bank failure. The Resolution Corporation will categorize the financial firms under five categories, based on their risk of failure. These categories are low, moderate, material, imminent and critical. The Resolution Corporation will take over the firms that fall under Critical category and it will resolve the firm within one year. It may extend the limit if it requires

insurance for 1 lakh deposits is not compulsory now.

[Bhai]

Just now, uttermost said:

insurance for 1 lakh deposits is not compulsory now.

ade aa limit valle decide chestaru avasaram batti

 

[Bhai]

Just now, aakathaai said:

so 1 lakh thappa migithaadantha bokko bokkasya bokkebhyaha ana maata 

no not never. avasaram ayite taggistaru

[reality]

1 minute ago, Bhai said:

ade aa limit valle decide chestaru avasaram batti

 

Hail the biggest democracy in the world...

[Hydrockers]

2 minutes ago, aakathaai said:

so 1 lakh thappa migithaadantha bokko bokkasya bokkebhyaha ana maata 

aa 1 lac kuda lepeyochu ani talk

[uttermost]

6 minutes ago, Hydrockers said:

ade ala ane lanco , ivrcl,GMR , Relaince , adani , hinduja andariki  lakshala kotlu appu icharu

inka vaalla friends ki vaallu ichukuntaru. verey emanna expect chesava? its the same all over the world brother.

except our 'capitalists'  (mainly uppercaste) are dumbfucks who can't seem to make money even if given every possible freebie to them. They only know to cry on freebies to people on the lower sections.

[aakathaai]

Just now, Hydrockers said:

aa 1 lac kuda lepeyochu ani talk

nice ache din aayaa

[Hydrockers]

Just now, aakathaai said:

nice ache din aayaa

baa niku vachala 15 lacs

modi thata esada?

[uttermost]

7 minutes ago, reality said:

Ee Modi gadi policies too cryptic ga unnayi...andhuke telugu lo cheppu ani adiga...

Endhi Cashflow ekkuva avudhha? Or people prefer to invest more than keeping liquid cash (uninsured) in banks?

It must be one or the other...

Modi ki antha telivi ledhu brother. idhi just financial norms for improving investment climate in the country.

ofcourse it involves prioritising debt over deposits. That is capitalism 101.

I mean capitalism cannot survive without debt.

[uttermost]

9 minutes ago, reality said:

Ee Modi gadi policies too cryptic ga unnayi...andhuke telugu lo cheppu ani adiga...

Endhi Cashflow ekkuva avudhha? Or people prefer to invest more than keeping liquid cash (uninsured) in banks?

It must be one or the other...

Their deposits are not uninsured. certain kind of bonds, securities will be insured by the govt. the kind that will create financial activity.

banks can come up with ways to create products that use this option, so all their deposits are liable to be bailed out.

 

[uttermost]

nenu simple ga saaramsam cheptha, vinandi.

Govt tried to capitalise uppercaste moron industrialists, believing they can make money and keep the system from doing down. but since those 'merit' morons are useless, govt has no other way to kick start the economy than moving into financialization.

FRDI is one step towards it.

blame your uppercaste morons for this state. join the uttermost revolution. lets fcuk every uppercaste asshole who whines about reservations and remind them who the actual culprit in India is today.

[aakathaai]

Just now, Hydrockers said:

baa niku vachala 15 lacs

modi thata esada?

endi esedi netthi meeda bochu 

[aakathaai]

Just now, uttermost said:

nenu simple ga saaramsam cheptha, vinandi.

Govt tried to capitalise uppercaste moron industrialists, believing they can make money and keep the system from doing down. but since those 'merit' morons are useless, govt has no other way to kick start the economy than moving into financialization.

FRDI is one step towards it.

blame your uppercaste morons for this state. join the uttermost revolution. lets fcuk every uppercaste asshole who whines about reservations and remind them who the actual culprit in India is today.

chaa nijamaaa