New Delhi, April 22 -- Bank deposit insurance is a foundational safety net designed to protect depositors-the primary providers of capital to banks. It plays a crucial role in maintaining public trust and ensuring financial stability, particularly during banking crises.

While the concept of deposit insurance is reassuring in theory, the practical implementation in India often falls short, leaving key gaps in depositor protection. This article examines the evolution of India's deposit insurance framework, its limitations, and whether recent policy measures are genuinely proactive-or simply reactive responses to emerging risks.

Read this | Banks added over Rs.2 trillion more in deposits than loans in 2024

India was the second country in ...