Request to raise the Deposit Insurance Cover on Bank Deposits
ALERT CITIZENS FORUM OF INDIA A7/303, Saket CHS LTD., Thane (W) 400601 ------------------------------ ------------------------------ --------- November 6, 2019 The Hon. Finance Minister, Govt. of India, New Delhi 110 001. Respected Madam, The last big change in the maximum limit of deposit insurance cover was made in the early years of liberalisation in 1993 when the insurance cover of all deposits from savings to term deposits was increased from Rs 30,000 to Rs 1 lakh . The objective was to provide comfort to depositors that their deposits up to Rs 1 lakh are safe in case the bank goes bust. However, 26 years on, the limit has not been revised again despite the law having provision for a higher insurance cover. It is high time for the government to fix a higher limit (at least Rs 5 lakh) to protect the interest of depositors. Here's why: Revision is long overdue Today, it's common for most account holders to have a deposit more than Rs 1 lakh . The