Letter to BS: Banks should publish newsletters about financial performance

The Reserve Bank of India (RBI) as the central bank should tighten banking regulations for the staff and any deviation should be reported to the regulatory committee at the earlies

This refers to the deposit insurance limit enhancement in the light of the upcoming Financial Resolution and Deposit Insurance (FRDI) Bill that will be introduced in the next Parliament session. As the name suggests, the insurance coverage should be enhanced to 80 per cent of the total deposit made by each customer. Like other insurance policies, 80 per cent of the sum assured should be returned on maturity or if claimed.

This way the customer won’t lose a substantial amount of investment if the bank performs poorly and thereby the remaining 20 per cent can be utilised in restructuring the assets