RBI proposes risk-based pricing for deposit cover

The Reserve Bank of India proposed risk-based pricing for bank deposit insurance to encourage stronger risk management. This move addresses concerns that stressed banks could face rapid withdrawals driven by digital channels and social media. Currently, deposit insurance covers up to Rs 5 lakh per depositor when a bank fails.

Aug 15, 2024 - 05:30

RBI proposes risk-based pricing for deposit cover

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The Reserve Bank of India proposed risk-based pricing for bank deposit insurance to encourage stronger risk management. This move addresses concerns that stressed banks could face rapid withdrawals driven by digital channels and social media. Currently, deposit insurance covers up to Rs 5 lakh per depositor when a bank fails.