The Hindu Business Line : Bank deposit insurance scheme to be reviewed

Ms K.J. Udeshi, Deputy Governor, RBI, said, that there will be an overall review of the deposit insurance scheme as revision in the rates is due next year.

The review would also examine the international experience and practices, which could be introduced in the country, she added.

As per the scheme, every depositor of an insured bank is entitled to repayment of deposits subject to a ceiling of Rs 1 lakh when the banking entity is liquidated or amalgamated.

In the wake of the failure of many co-operative banks in the recent past, coupled with other crises in the banking sector, there has been a demand to hike the ceiling on the insurance, sources said.

In fact, a number of banks are understood to be unhappy with the recent hiking of premia.

Most banks feel that they are taking on the burden of co-operative banks and want to pay the premia on a risk-related basis, as was recommended in the Jagdish Kapur report, sources said.

More Stories on : Investor Protection | Insurance

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Aviva sale may open up Japan market for Wipro

Public sector insurers against splitting motor cover risks

Cholamandalam MS targets SMEs to drive volumes

Banks asked to review computation of liabilities

Bond prices surge; rupee firming up

`Corporatisation key to merger of public sector banks'

Bank mergers a pipedream

`New norms on bank ownership will help mergers, consolidation'

Dena Bank plans second public issue in Q3

RBI in quality drive; to go for ISO 9000

Bank deposit insurance scheme to be reviewed