Insurance for Bank deposits

Recently read in news papers that two persons died because of failure of PMC bank. One by heart attack and another by suicide due to apprehension of losing their hard earned money deposited in the bank.

Here my question is why depositors are to die for the mistakes of bank? Banks can write off billions of rupees as NPAs , but why poor customers and their savings is not protected!

Many of us well aware that mostly middle class, that too retired or near retirees save money to live a secured and peaceful post retiree life with lot of confidence in the bank/s they deposit. If the banks fail because of their own fallacies or otherwise, why the depositors suffer and lose their monies.

If people lose confidence or trust in banks they resort to other saving modes, which will definitely affect economy and money market. Further, it damages country's credibility too.

This is to suggest either all bank deposits are to be insured to full extent or Govt. of India stood as guarantor for these monies. This will encourage more savings and people will not fall prey to gullible schemes and lose their money. Moreover this will enhance control and monitoring by Govt. or its agencies due to increased responsibility and liability in case of failures. more  

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If it was fixed in 1959,then it is high time that limit should be revised to atleast Rs 5 Lakhs.Why Govt is shirking from its responsibility. more  
Why 5 lakhs only. It should be for total deposit amount. more  
Something I learned from this topic. I was under the impression, the deposits in Nationalized banks are backed by the GOI. Hmmm...If the bank deposits are risky, one might as well go with mutual fund investments. more  
Equity MF investments depend on manipulated share prices and money can be lost. In the case of debt funds, the fund value can fall because of the same issues of default by bond issuers. Your money is always at somebody else's mercy. more  
If view of the non reliability of banks. Insurance must be taken ,or GOI must counter guarantee to the whole sum deposited in Nationalised banks at least. more  
Banks should insure total amount of deposits. As they have taken the business of life insurance and health insurance they should do insurance of Deposits too.
When they can write off lakhs of crores of NPA amounts by way of bail out through public money what is the problem in giving Guaranty for Deposits? more  
RBI shall be made Responsible for all Frauds of Bank and Financial Institutions. Governments shall not be given the CHANCE OF FUNDING THESE AGAIN FROM PUBLIC/NATIONAL FINANCES. more  
DICGC insurance cover is only Rs. one lakhs since 1959. There is no doubut that it needs to be revised immediately. more  
I fully agree with SN Sitaraman,For bank scams properties of people involved should be auctioned more  
Everybody is escaping . It is strange all relevant Bank Staff and higher ups NEVER PROSECUTED NOR PUNISHED more  
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