deposit insurance

Deposit insurance was set at Rs5 lakhs in 2021
Banking

Is There a Case for Higher Deposit Insurance Coverage in India?

These institutions were rescued by takeovers or bailouts, but the failures of several smaller cooperative banks remain a persistent issue. One consequence of banking failures abroad, especially in the US, has been a shift of depositor funds from smaller banks to larger, more stable ones, driven by a trust deficit. A similar trend could emerge in India, putting smaller banks under pressure.

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