Most of the retail customers of the Banks are ordinary people of India who strive hard to save some money to meet their needs in emergencies and other requirements of life. The pensioners and other old/retired people have deposited almost their entire savings of life in Banks and depend on the interest income to meet the needs of their day to day life. Under such circumstances it becomes the duty of the Government of India to ensure the safety and adequacy of return on the savings kept in Banks by retail customers; especially because there is no social security network in the country.

The limit on the insured amount in the Banks was fixed at Rs. 1 lac, more than a quarter century ago (1980). Is it not incumbent upon Government of India to revise it upwards now? The kind of difficulties the poor depositors are put to in case of failure of a Bank have been clearly amplified in the case of Punjab and Maharashtra Co-operative Bank. While some customers of the Bank have met an unfortunate demise; because they could not withdraw their money from the Bank to meet their urgent medical needs, some  have committed suicide.

I, therefore, request the Government of India/ Reserve Bank of India and DICGC to

(1) Provide insurance for the entire amount deposited by the Retail Customers in the Banks.

 (2) In case of failure or freeze on the deposits kept in the Bank; immediately release the entire insured amount to the customers.

(3)Increase the rate of interest on all deposits made by senior citizens to a reasonable level, which should be at least 5% higher than the rate of inflation for the retail customers.