Money & Banking

PMC Fallout: Banks ensure implementation of RBI 2017 order on disclosing deposit insurance cover

Our Bureau Mumbai | Updated on October 17, 2019 Published on October 17, 2019

Banks are now ensuring the implementation of a 2017 order by the Reserve Bank of India asking all scheduled commercial banks, all small finance banks and payments banks to incorporate information about deposit insurance cover along with the limit of coverage upfront in customer's pass book.

HDFC Bank issues a statement that the information related to deposit insurance cover "has been inserted as per RBI circular dated June 22, 2017 which requires all scheduled commercial banks, all small finance banks and payments banks to incorporate information about deposit insurance cover along with the limit of coverage upfront in the pass book."

“The passbooks without printed information have been stamped with the requisite information so as to be fully complaint with extant RBI guidelines,” the statement added. HDFC Bank issued the statement after a picture of a passbook issued by HDFC Bank started circulating on social media where the bank had used a rubber stamp to inform customers that deposits of only ₹1 lakh was covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC).

The crisis at the PMC Bank has highlighted the issue of deposit insurance coverage. The deposit insurance cover was last hiked with effect from May 1, 1993 to ₹1 lakh from ₹ 30,000 in July 1980.

Published on October 17, 2019
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