Insurance for Bank deposits
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
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