The Russian State Duma has rejected a proposed bill on 'guarantees for bank deposits of citizens,' which was voted into law after the third reading on 29 September 1999 and turned down by the Russian president on 20 December 1999. 247 deputies voted for the decision, according to Rosbalt.
With the goal of protecting bank deposits of Russians the proposed bill provided for a special reserve corporation. The property of the organization would be formed from money deducted by banks working with private depositors. From this sum, it was proposed to pay depositors compensation (from 50 to 100 percent) in the case of a revoked license by a credit organization executing a bank operation. At the outset, the reserve corporation would have 2 billion rubles in capital. The legislation provided for an observatory council to supervise the activity of the reserve corporation.
The bill was turned down by the Russian president because many of its regulations contradict the budget, tax, and civil codes of the Russian Federation, according to the State Duma committee for credit organizations and financial markets. Moreover, in 2002 the Russian government delivered an amended bill to the State Duma on 'insurance to individual deposits in banks in the Russian Federation,' which allows for a new way to regulate the problem of protecting the rights and interests of depositors in banks in the Russian Federation.
On Wednesday, the State Duma also rejected a bill 'on business activity in the area of research and use of outer space,' 'on the acceptance and realization of special federal programs,' and 'on the circulation of explosive materials.' All of these bills were also turned down by the Russian president.