First issue that I want to discuss relates to deposit insurance. More specifically, the issue relating to increasing the limit on deposit insurance cover. Deposit Insurance protects depositors against the loss of their deposits in case a deposit institution is not able to meet its obligation to the insured depositors.
In India, the commercial banks, Regional Rural Banks (RRBs), Local Area Banks (LABs) and co-operative banks are covered by deposit insurance. There has been a persistent demand from stakeholders and public representatives in the  BIS central bankers’ speeches  7  recent past for a hike in deposit insurance cover from the current level of ₹ lakh.