Fact check: FRDI Bill and new bank laws? Truth behind viral video

The video claims that "new bank laws" under the FRDI Bill will enable the government to use customer deposits to bail out a failing bank.

A video about the controversial Financial Resolution and Deposit Insurance Bill (FRDI Bill) recently gone viral on social media. The video claims that "new bank laws" will enable the government to use customer deposits to bail out a failing bank. Truth be told, the viral video on FRDI Bill is originally from 2017. It didn't reveal the whole truth back then and doesn't even make sense right now.

One thing that the video does get right is that the FRDI Bill did contain a 'bail-in' clause for resolution of bank failure which was perceived to be against the interest of the depositors. The bill was introduced in Lok Sabha in 2017 and immediately faced backlash, due to which the government withdrew it from the house in 2018.

The same video also went viral when the FRDI Bill was introduced in 2017 and it has gone viral again amid concerns over the financial health of banks. The video has been shared thousands of times and has been viewed by lakhs of people.

As earlier mentioned, the videos are from 2017 and the FRDI Bill was withdrawn in 2018. The official Lok Sabha website mentions the status of FRDI Bill as "withdrawn" and there are no reports about its reintroduction.

The bank deposits of customers including Savings, Current, Fixed, and Recurring remain insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC) which provides customers an insurance cover up to a maximum of Rs 1 lakh.