RBI Governor cautions depositors to be careful while chasing high returns

Reserve Bank of India Governor Shaktikanta Das on Sunday 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 in the national capital.

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.

With deposit insurance coverage of Rs 5 lakh per depositor per bank, the number of fully protected accounts at end of the previous financial year constituted 98.1 per cent of the total number of accounts, as against the international benchmark of 80 per cent.

(ANI)

Also Read: PM Modi says, financial empowerment of people is our ultimate goal