It's not the right stage to put differential premium on banks: Finance Secy

Finance minister had announced hiking the deposit insurance limit to Rs 5 lakh for each bank depositor

The premiums charged to banks to cover deposit insurance of customers may hike to 12-13 paise per deposit of Rs 100 every year, Finance Secretary Rajiv Kumar said on Sunday, asserting that the government is not in favour of a risk-based premium regime.

“The banks cannot pass on the hike in premiums to its customers, according to the norms. The premium won’t go up substantially in any case and may be hiked to 12-13 paise (per deposit of Rs 100 a year),” Kumar said in a media interaction.

The premium payable by any insured bank cannot exceed 15 paise per