Amid concerns being raised on bank deposits under the draft FRDI Bill, an SBI research report today said the proposed law is contemplating an increase in deposit insurance coverage from the current Rs 1 lakh.
The proposed 'bail-in' clause in the draft Financial Resolution and Deposit Insurance (FRDI) Bill, 2017 has raised a lot of concern among depositors who are worried that they may lose their deposits with banks, the SBI Ecowrap report said.
"However, the truth is that the risk is much less in the proposed bill," it said.
Currently, DICGC provides deposit insurance of up to Rs 1 lakh and rest of amount is forfeited in the rare event of a bank failure.
