It could be ‘advantage smaller banks’ with the government proposing higher insurance cover for depositors and a number of mutual funds taking a hit due to defaults and downgrades in the past couple of years.
Finance Minister Nirmala Sitharaman in her second Budget proposed to raise the insurance cover on bank deposits to Rs 5 lakh from Rs 1 lakh at present. This may not augment deposits for big banks that are already safe, but smaller lenders may see more seekers for their fixed deposit ..
