Banks' deposit insurance hike may be on the anvil amid periodic review

Should deposit insurance revisits be episodic? Like after the collapse of Bank of Karad in 1992 and the Punjab and Maharashtra Cooperative Bank fiasco in 2019

The mess at the Mumbai-based New India Cooperative Bank has once again put the spotlight on deposit insurance. M Nagaraju, secretary in the Department of Financial Services, has said a hike in coverage is under consideration (speculated to be at ₹15 lakh from the current ₹5 lakh). This issue – among other matters – may figure at a meeting to be held with the chief executive officers of state-run banks on March 4. The Deposit Insurance and Credit Guarantee Corporation of India (DICGC) – a subsidiary of Mint Road – is the executing agency; and if an upward revision were