The Hindu Business Line : Raise insurance on bank deposits

Individual depositors' money in banks is insured by the Depository Insurance and Credit Guarantee Corporation of India (DICGC) up to Rs 1 lakh only. When a moratorium is announced, depositors suffer and feel helpless. Many may not even be aware of such a low insured limit for their deposits.

Senior citizens place their life savings in the banks thinking this is the safest avenue for them. But in actual fact it is not, if the amount is more than Rs 1 lakh.The RBI, the Finance Ministry and other decision makers must review and do something toprotect the interest of the public and their deposits. It is time the insured limits were raised considerably and other solutions though of to safeguard the investors.

The recent announcement of a bank moratorium would have caused great anxiety to the bank's depositors. If banks hold that no depositor in recent times has lost any money, then, why cannot suitable systems be put in place to take care of the safety of their deposits? This is certainly the time for a rethink on the issue.

R. Mohan

Tiruchi

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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