{"id":122627,"date":"2021-07-31T19:58:31","date_gmt":"2021-07-31T14:28:31","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=122627"},"modified":"2021-07-31T19:58:31","modified_gmt":"2021-07-31T14:28:31","slug":"patchwork-progress","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/patchwork-progress\/","title":{"rendered":"Patchwork progress \u00a0"},"content":{"rendered":"<p><strong>Source<\/strong>: <a href=\"https:\/\/epaper.thehindu.com\/Home\/ShareArticle?OrgId=GQ88QRK6E.1&amp;imageview=0\">The Hindu<\/a><\/p>\n<p><strong>Synopsis<\/strong>: The Government has recently introduced changes to 1961 Deposit Insurance and Credit Guarantee Corporation law.<\/p>\n<h5><strong>Background<\/strong><\/h5>\n<p>Read here: <a href=\"https:\/\/forumias.com\/blog\/changes-to-deposit-insurance\/\">https:\/\/forumias.com\/blog\/changes-to-deposit-insurance\/<\/a><\/p>\n<h5><strong>Benefits for depositors: Added Points<\/strong><\/h5>\n<ul>\n<li>As per RBI data, \u20b976.21 lakh crore or almost 51% of deposits are now insured, but 98.3% of all accounts have balances of \u20b95 lakh or less, so they are fully insured.\n<ul>\n<li>This can be a source of <strong>renewed comfort for people in the banking system <\/strong>which is important for financial stability<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h5><strong>Issues existing:<\/strong><\/h5>\n<ol>\n<li>First, making incremental changes in quick succession suggests a <strong>piecemeal approach<\/strong> to governance rather than a system-wide view.<\/li>\n<li>Second, given the rising distress in households and the downward momentum in savings levels due to the pandemic, <strong>this change must be allowed to make it through the din in Parliament. <\/strong><\/li>\n<li>Third, the <strong>outcome is not satisfactory <\/strong>for several people with limited financial literacy and access to retirement savings instruments, with lifetime earnings (possibly over \u20b95 lakh) parked in a neighborhood co-operative bank.<\/li>\n<\/ol>\n<p>Hence, just as the latest amendments have an enabling provision, there should have been one modification to raise the insured deposit limit in line with inflation and per capita income trends.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: The Hindu Synopsis: The Government has recently introduced changes to 1961 Deposit Insurance and Credit Guarantee Corporation law. Background Read here: https:\/\/forumias.com\/blog\/changes-to-deposit-insurance\/ Benefits for depositors: Added Points As per RBI data, \u20b976.21 lakh crore or almost 51% of deposits are now insured, but 98.3% of all accounts have balances of \u20b95 lakh or less,&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/patchwork-progress\/\">Continue reading <span class=\"screen-reader-text\">Patchwork progress \u00a0<\/span><\/a><\/p>\n","protected":false},"author":10316,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216],"class_list":["post-122627","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704921691},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/122627","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10316"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=122627"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/122627\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=122627"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=122627"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=122627"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}