The Reserve Bank does not see any major impact on the balance-sheets of banks due to the five-fold hike in deposit insurance to ?5 lakh, reports Live Mint.
“The premium is something, which we consider, will increase from 10 paise to 12 paisa per ?100 for the time being. So, the impact on banks’ balance sheets is not likely to be much,” RBI Deputy Governor B P Kanungo told reporters during the post-policy presser.
The hike in deposit insurance coverage has been a long pending demand from bank depositors as well as from the apex body of UCBs Nafcub.