NEW DELHI: Reserve Bank of India (RBI) Governor Shaktikanta Das on Sunday cautioned depositors to be careful while chasing high returns as it comes with higher risk.
Speaking at the ‘Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs 5 lakh’ programme here, the RBI Governor said India can become a “gross driver” of the world economy if all stakeholders in the banking sector work together.
He stated that RBI is proactive in strengthening corporate governance guidelines of banks to ensure that the banking system remains robust and resilient.
“Two significant milestones have been achieved recently in the banking system. After a gap of 27 years, we have increased the cap from Rs 1 lakh to Rs 5 lakh for these depositors. Rs 1 lakh was set in 1993. The second significant change was that within 90 days banks have to give guaranteed deposits.” Das added.
PM Modi and Union Finance Minister Nirmala Sitharaman were also present at the event.
During the event, Prime Minister Narendra Modi handed over symbolic cheques to the depositors of the banks that failed to return their money, under the ‘Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs 5 Lakh’ scheme.
With deposit insurance coverage of Rs 5 lakh per depositor per bank, the number of fully protected accounts at end of the previous financial year constituted 98.1 per cent of the total number of accounts, as against the international benchmark of 80 per cent.