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Stronger buffers for Indian bank deposits as world faces financial crisis

Customer confidence may improve if recovery time, insurance coverage is better

Banks
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Anoushka Sawhney New Delhi

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American regulators shut down Silicon Valley Bank on March 10, allowing depositors access to their money three days later.

Reforms have made India’s deposit insurance framework banking safer, but more may need to be done.

The 2020 Union Budget raised the threshold for deposits covered by insurance to Rs 5 lakh. That means that if a bank shuts down, every account holder it has will get back their money for a maximum limit of Rs 5 lakh. It was Rs 1 lakh before. After that Budget the share of fully protected accounts increased from 92 per cent in 2018-19 to

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First Published: Mar 17 2023 | 11:28 AM IST

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