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 … Continue reading 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)