Monday, 11 December 2017

FRDI Bill: Depositors stand at fifth position in a bank liquidation


FRDI Bill: Depositors stand at fifth position in a bank liquidation
 Anand Adhikari   New Delhi     Last Updated: December 11, 2017 


FRDI Bill, the new institutional framework for dealing with bankruptcies in banks would certainly make your blood boil. First, the depositors are treated like unsecured creditors. They stands at fifth position in the queue in the waterfall mechanism for distribution of whatever is left in the bank in case of a collapse.

Under the new Financial Resolution and Deposit Insurance Bill, 2017, the proceeds from sale of assets of a bank would first go to insured depositors. In the previous regime, the depositors were 
insured for only Rs 1 lakh irrespective of the deposit made in a bank. The new bill, however, makes no mention of the maximum amount of insured deposit. There is a possibility of government and the regulator, i.e., Reserve Bank of India, keeping the same limit or lower.

The second in the list is resolution costs, which is the cost incurred in the entire liquidation process right from legal cost at the National Company Law Tribunal (NCLT).

The third in the queue are workmen dues for 24 months. The secured creditors are also clubbed with workmen dues at the third position.

At the fourth position are the wages to employees for 12 month.

The amount to uninsured depositors is at the fifth spot. 

Surprisingly, it is the depositors money that is used in a banking system to do business. It's the core money that actually runs the banking system. These deposits, which will be mostly uninsured as the maximum insured deposit in the earlier bill was only Rs 1 lakh, are now under threat of not getting anything in a an insolvency.
The secured creditors are comfortably sitting at the third spot to recover whatever is left in a bank post liquidation.

http://www.businesstoday.in/

Financial Resolution and Deposit Insurance Bill, 2017 Text

 Financial Resolution and Deposit Insurance Bill, 2017

FRDI 2017-Vikatan TV

How Jerusalem issue plays into Iranian, Turkish (and Russian) hands

M.K. Bhadrakumar


How Jerusalem issue plays into Iranian, Turkish (and Russian) hands

By M.K. BHADRAKUMAR DECEMBER 11, 2017

Iran has, predictably enough, taken a hard line on the US decision to recognize Jerusalem as the capital of Israel. There were public demonstrations in several Iranian cities following Friday prayers and statements by President Hassan Rouhani and other senior politicians. Notably, the commander of the Islamic Revolutionary Guards Corps, Gen. Mohammad Ali Jafari, warned: “Al-Quds (Jerusalem) will be the place where the Zionist regime will be buried.”

It was Turkey’s reaction that set the mind thinking that the ground beneath our feet is shifting, however. President Recep Erdogan used exceptional language in his response, calling Israel a “terrorist” state. His stance is important for a variety of reasons. Turkey is currently chairing the Organization of Islamic Cooperation (OIC) and has called for an emergency summit in Istanbul on Wednesday. This puts Erdogan in the driving seat.

The OIC has traditionally kowtowed to Saudi Arabia. But the Saudi regime finds itself on the defensive at the moment. The unsavory talk in the bazaar is that King Salman and the Crown Prince have played footsie with Trump and Jared Kushner. Erdogan hears bazaar gossip, for sure. Will the OIC recognize Jerusalem as the capital of the state of Palestine? This is a possibility.

Both Iran and Turkey repudiate the notion of Jerusalem being Israel’s capital. Iran has brought into play the politics of “resistance,” whereas Erdogan stresses “We will continue our struggle decisively within the law and democracy.” The distinction must be noted – but then, so must the degree of convergence.

Iran and Turkey have both long wished for an end to Saudi Arabia calling the shots in the Muslim Middle East. Now that the issue of Jerusalem has come to the fore, the Saudi regime must be wary of being seen to coordinate with Israel, or dancing to Trump’s tune.

The Saudi regime is also grappling with the quagmire in Yemen, where it is shedding “Muslim blood.” Pressure will now increase to end the war in there. Rouhani put forth on Sunday two preconditions to normalize ties with Saudi Arabia – stop “bowing” to Israel and, secondly, end the war in Yemen.

For Erdogan, Jerusalem becomes another platform to advance his strategic defiance of the US. Of course, the trial in a Manhattan federal court to discredit Erdogan now becomes almost an irrelevance. If pushed any further, Erdogan may hit back by breaking Turkey’s relations with Israel, as he has hinted at already. Doing so will, of course, make him a cult hero on the Arab Street.

To be sure, the damage to American prestige and credibility in the Middle East has grave implications for the Syrian situation. Unsurprisingly, President Vladimir Putin was due to land in Ankara late on Monday for a face-to-face conversation with Erdogan.

Erdogan is furious about the Pentagon’s continued supply of weapons to the Kurdish militia. Top Turkish officials have openly threatened that they’ll teach the US a painful lesson. Neither Turkey nor Russia (nor Iran) wants an open-ended US military presence in Syria. They may well seek to keep the US out in the cold via talks in Astana.

The Russian Foreign Minister, Sergey Lavrov, has ruled out any prospect of the US gaining – under whatever pretext – access to Syria’s Mediterranean coast. He said point-blank on Friday: “There are no plans with the United States on this specific region (Idlib) of Syria. I believe that’s totally counterproductive.” In sum, Turkey, Russia and Iran will ultimately decide how long the US military presence in Syria is tolerated.

The power dynamic is likely to change further than expected, since the Jerusalem issue effectively debilitates the Saudis. Ironically, the Syrian peace process probably has its greatest chance of success (on Russian-Turkish-Iranian terms, of course.)

//What’s happening in Iraq and Syria are also out in the open. Libya, Egypt and Yemen are also experiencing serious problems. This Jerusalem step shows how some have been taking advantage of this situation. We need to be vigilant as Muslim//

Erdogan openly links the US decision on Jerusalem with its policies on other regional conflicts. He said on Sunday: “What’s happening in Iraq and Syria are also out in the open. Libya, Egypt and Yemen are also experiencing serious problems. This Jerusalem step shows how some (read US and Israel) have been taking advantage of this situation. We need to be vigilant as Muslims.”

The Arab states have tended to pay mere lip service to the Palestine issue. Now, for the first time, the baton of leadership is passing into non-Arab (Turkish-Iranian) hands, and Palestine is now a Muslim rather than an Arab issue – something Iran has always sought. It is a historic transition that underscores the diminished Saudi clout in regional politics. Arguably, the sectarian card becomes useless now in terms of isolating Iran.

Ultimately, then, the question must be posed: Who really stands to gain from Trump’s decision on Jerusalem? Evidently, like in the Boyzone song, words are all Israel’s got. On the other hand, Israel’s pet project – the rollback of Iran – runs into headwinds and may have to be mothballed. Any Israeli intervention in Syria to counter Iran’s presence becomes almost suicidal in such a supercharged situation.

Erdogan has pledged that: “With the roadmap that we will determine (at the OIC summit), we will show that the realization of this decision (moving the US embassy) will not be easy at all.” He means it. If the US’ game plan was to get the Saudis to open a parallel track and push Jared Kushner’s peace plan, Erdogan will shoot it down. Turkey, Iran and Qatar are sure to promote Hamas as the authentic voice of the Palestinian people.

Trump hates to be a “loser.” Erdogan says the US president is pandering to his evangelical constituency. Does that make Trump a “winner”? The US election in 2020 seems light years away.
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M.K. Bhadrakumar served as a career diplomat in the Indian Foreign Service for over 29 years, with postings including India’s ambassador to Uzbekistan (1995-1998) and to Turkey (1998-2001). He writes the “Indian Punchline” blog and has written regularly for the Asia Times since 2001.

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கிழக்கு மாகாண சபை உறுப்பினரும் பொறியியலாளருமான ஷிப்லி பாரூக் இந்திய இராணுவத்தினால் திட்டமிடப்பட்டு இனச்சுத்திகரிப்பு செய்யப்படும் காஸ்மீர் முஸ்லிம்களின் உரிமைகளுக்காக இலங்கையில் உள்ள முஸ்லிம் அரசியல் தலைமைகள் குரல் கொடுக்க வேண்டும் என தெரிவித்த கருத்துக்களின் ஆடியோ காணொளி… தொகுப்பு-ஓட்டமாவடி அஹமட் இர்ஷாட்.