The specific regulatory architecture of a country has implications for the role and mandate of the deposit insurance system. In some cases, deposit insurance systems are actively involved in the resolution process, in some cases less actively so, and in some cases not at all. In India, bank resolution rests entirely with the regulators and supervisors, and the DICGC plays only a pay-box role.
In the process, the public sector banks’ efficiency has also increased in an impressive manner and they are playing a very salutary role in financial inclusion. No doubt, there is scope and indeed a compelling need to increase penetration of banking services to all segments of the population and enhance both, efficiency and resilience in the system.