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Letter to BS on FRDI Bill and increase in deposit insurance coverage

The DICGC had last increased the limit of deposit insurance 25 years back in 1993 from Rs 30,000 to Rs 100,000.

Business Standard 

Once the Financial Resolution and (FRDI) Bill is passed, the will take over the functions of from the and Credit Guarantee Corporation (DICGC), a subsidiary of RBI. The RBI has, till date, by and large, ensured no loss to the fully protected accounts of the depositors which constitute 92.1 per cent of the total deposits as of March, 2017, if warranted by merger and amalgamation of banks.

The is silent about the likely increase in the coverage. The had last increased the limit of 25 years back in 1993 from Rs 30,000 to Rs 100,000. As per India, Rs 490,000 of 2017 is equal to Rs 100,000 of 1993 and hence, the limit of should be increased to a minimum amount of Rs 500,000. Ramanath Nakhate Mumbai

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First Published: Sun, January 28 2018. 22:56 IST