RWA forum wants RBI to ensure cent percent insurance on deposits
RWA forum wants RBI to ensure cent percent insurance on deposits
Ramesh Kumar
RWA forum wants RBI to ensure cent percent insurance on deposits
Photo: Akash Mishra

RWA forum wants RBI to ensure cent percent insurance on deposits

Noida: The confederation of NCR resident welfare associations on Thursday wrote to Shaktikant Das, Governor of Reserve Bank of India, demanding cent percent insurance of people's deposit with banks from across public and private sectors. 

It raised the issue that people deposit their savings with banks in the hope that their hard-earned money would be safe and can be withdrawn any time as per the need. Keeping sole trust in banks, people also deposit money for a long time for their children's education and marriage.

But as per a circular issued by the RBI in May, 1993, only Rs 1 lac is insured in case of bankruptcy of a bank. They call it unfair for account holders who trust the bank with his deposit. The government and RBI, they said should guarantee cent percent people deposit. 

P S Jain, president of the confederation argued, ''When deposit insurance and credit guarantee corporation collects an insurance premium from all depositors, it should guarantee cent percent safety of their deposit.'' 

''Let the corporation increase the amount of premium, but the people's deposit should be safe with the bank,'' he added. 

As per new rules, citizens are not allowed to keep cash with them after a certain limit. Considering this restriction, they deposit it in the banks and if these deposits are also not safe, there would be a time when they will not have any money left for them, lamented Jain.

He pointed out that it is also not possible for a commoner to keep an eye on the banks' activities to safeguard his/her deposit. It is the responsibility of the RBI, which grants licence for operation of a bank, to monitor them by forming a dedicated cell to keep an eye on their activities. 

He said, ''We are hopeful that government and the RBI will look into the matter and ensure that people's deposits with banks are cent percent safe.''

A copy of the letter also attached each to the Prime Minister's Office (PMO) and Union Finance Minister.