A proposal to introduce a Bill in Parliament for setting up a Resolution Corporation to deal with bankruptcy in banks, insurance companies and financial entities received the Cabinet go ahead on Wednesday. The Financial Resolution and Deposit Insurance Bill, 2017, which aims to instil discipline in financial service providers in the event of a financial crisis by limiting the use of public money to bail out distressed entities, was approved by the Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday, an official statement said. The proposed Bill will provide for a comprehensive resolution framework to handle any bankruptcy situation in banks, insurers and financial sector entities.According to the statement, the Bill—when enacted—will pave the way for setting up of a Resolution Corporation. It would also lead to repeal or amendment of resolution related provisions in sectoral Acts as listed in Schedules of the Bill. “It will also result in the repealing of the Deposi