Reserve Bank of India Governor Shaktikanta Das warned the depositors to be careful while chasing high returns as it comes with higher risk.
“There are institutions offering higher rates. Higher return higher interest rate has also higher risk. Depositors should be careful while chasing high returns,” Das said while speaking at the ‘Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs 5 lakh’ programme.
He said, “Two significant milestones have been achieved recently in the banking system. After a gap of 27 years, we have increased the cap from Rs 1 lakh to Rs 5 lakh for these depositors. Rs 1 lakh was set in 1993. The second change was that within 90 days banks have to give guaranteed deposits.”
“RBI remains committed to ensuring that the banking system remains robust and resilient,” he stated.
PM Modi and Union Finance Minister Nirmala Sitharaman were also present at the event.
In the event, Prime Minister Narendra Modi handed over symbolic cheques to the depositors of the banks that failed to return their money, under the ‘Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs 5 Lakh’ scheme.
Prime Minister Narendra Modi on Sunday said that ‘aarthik sashaktikaran’ (financial empowerment) is the ultimate goal of the Centre and it has saved banks and provided security to the depositors.