The Reserve Bank of India (RBI) and the Gujarat state government today explored the possibility of raising the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance cover for deposits beyond Rs 1 lakh for the beleaguered cooperative banking sector in the western state.
The issue came up for discussion at a high-level meeting attended by Gujarat finance minister, home minister and registrar of cooperative socities (RCS) with RBI governor Bimal Jalan and deputy governor Vepa Kamesam at RBI headquarters in Mumbai.
According to sources, Gujarat minister suggested raising the insurance premium for deposits insured by DICGC to raise the limit beyond Rs 1 lakh.
At present, up to Rs 1 lakh deposit is insured.
