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India considering raising deposit insurance limit above current ?5 lakh: Report

The article from CNBC TV18 discusses the potential increase in the deposit insurance limit in India, which currently stands at Rs 5 lakh. This limit, set by the Deposit Insurance and Credit Guarantee Corporation (DICGC), might be raised to better protect depositors in the event of bank failures. The discussion around increasing this limit comes in light of the recent global banking turmoil, including the collapse of banks like Silicon Valley Bank, which has prompted a reevaluation of deposit insurance frameworks worldwide. The article mentions that while the current limit covers a significant portion of depositors, there is a growing call to enhance this coverage to provide greater security for larger depositors and to align with international standards where some countries offer much higher insurance limits. The decision to increase the limit would aim to bolster confidence in the banking system, especially among small depositors, and could involve considerations of economic stability, inflation, and the financial health of banks.

Read the Full cnbctv18 Article at:
[ https://www.cnbctv18.com/business/finance/deposit-insurance-limit-may-rise-above-rs-5-lakh-india-19560126.htm ]