India's deposit insurance cover lowest among BRIC, says FM Sitharaman

India has the lowest deposit insurance cover among the BRICS nations (excluding South Africa), finance minister Nirmala Sitharaman said on the floor of the Loksabha on Monday. 

"The deposit insurance cover to per capita income in India stood at 0.8 as on March 31, 2019, is the lowest when compared to other BRICS nations, excluding South Africa," the FM said. 

This is in stark contrast to Brazil, which has a deposit insurance cover to per capita income ratio at 8.5. The ratio for China stands at 7.4, and for Russia, it is 2.2. India’s deposit insurance cover in absolute terms stands at Rs 1 lakh, or about $1,407. The Rs 1 lakh limit is the maximum that one is assured to get, even if a depositor has more than that in his bank account. 

In comparison, Brazil’s deposit insurance cover is the highest at $75,588 followed by China at $72,690 and Russia at $24,306. In South Africa a proposal to establish Deposit Insurance System is underway.