We cannot, however, rule out cases where, within a limited time frame until the blanket deposit insurance is removed, banks prove unable to strengthen their capital base by themselves. The current scheme for public funds injection pursuant to Article 102 of the Deposit Insurance Law is designed to be permanent and functions as the last resort to prevent systemic risk from materializing.
Later, in 2012, the fixed interest rate ceiling of 26 per cent was removed while in April 2014 an additional criterion was introduced where in the lending rate was fixed at a multiple (2.75 times) of the average base rate of five largest commercial banks. 15. The regulatory ceiling on interest rate is applicable only to NBFC-MFIs.