Good, Bad & Ugly

On the social media, one news is getting viral, which is about the new bill related to Banks, wherein the relation between customer and the bank is recommended to be changed drastically, in the event there is a bail-in required for that bank.

Good :

The Deposit Insurance and Credit Guarantee Corporation Act, 1961, insured the deposits worth Rs One Lakh for each depositor. That was good, because every customer of the bank felt safe while keeping one’s life time savings with the bank as safe.

Bad :

The Credit Guarantee Amount of Rs One Lakh was decided in 1961. Since then, it has never been increased. If one considers the value of Rs One Lakh in 1961, then the same would be worth few Crores of Rupees in today’s time. That, no government ever considered, although they all went in for exorbitantly increasing their own remunerations from time to time.

Ugly :

Instead of considering a linkage between the inflation index or any other appropriate index with this guaranteed amount, the government not only has decided to keep it stagnant at Rs One Lakh only, but also has decided to bring in the new banking bail-out related bill, making the investors lose their confidence in the government mindset, especially after Demonetisation, only GST applications, and future plans of making everything online and digital. How can a common citizen, especially the senior citizens, shall have a faith in the government, when their own life time savings are at stake, if they are either with a nationalised PSU bank or with a co-operative bank, because most of these banks are run by the politicians and/or government employees (whose services cannot be terminated but can only be transferred, so they can make a mess at some other location), and obviously are ill run due to their own policies.

It obviously means that people should boycott the PSU banks and prefer private banks like HDFC Bank, ICICI Bank, etc, which are growing in tremendous rate, give a sense of confidence to the customer better, when the PSU banks are sinking.

Mera Bharat is really Mahan. Jai Hind. more  

View all 12 comments Below 12 comments
when they first fixed the insurance at INR one lakh and the present inflation index as per the CBDT, they should proportionately raise the amount more  
Thanks Mr. Mangesh Anaokar for raising this important issue. more  
Since all nationalised bank are controlled by Central govt. and all Pvt. Banks and co-op banks are supposed to have regular RBI audit then why not 100% insurance to customer for all their funds in bank. Other wise it is total misguiding of customer. more  
Yes, very correct. more  
PRAY THE GOVERNMENT RAISE THE THRESHOLD OF BANK DEPOSITS TO SAY RS. 5 LAKHS FOR SENIOR CITIZENS OR MORE PLEASE more  
At times Private banks are worse than the PSU Banks. Generally all PSU Banks are ruined by the Govt more  
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