Q.3 What are the objectives of deposite insurance? Examine the functioning of deposit insurance in India and suggest ways to improve it. (10 Marks)

Mentor’s comment-

  • https://www.thehindu.com/opinion/op-ed/do-we-need-insurance-for-bank-deposits/article38023494.ece
  • In the intro, mention instances of failures of banks and resulting panic in depositors. 
  • In the body mention objective of infusing confidence in depositors and providing stability to the banking system. Next mention DICGC’s role as insurer. In suggestion mention need for risk adjusted model. 
  • Conclude by mentioning the need to implement the changes to change the depositors’ behaviour. 
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k.s.nandhini
2 years ago

Razorpay:I8GfoK9Ze5ifgl

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Staff @CD
2 years ago
Reply to  k.s.nandhini

Nandhini

Very good answer.
Intro is fine. In next part objectives are well written.
Provisions and issues have also been comprehensively covered.
In way forward, key terms like Basel guidelines, risk adjusted model can be incorporated.
Conclusion is fine.
Keep writing. 🙂

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