Protecting the interests of the customers in nationalized and cooperative banks, Grahak Panchayat Maharashtra has written to the Prime Minister, Finance Minister and Consumer Protection Minister to increase the amount of insurance cover on FDs. the Grahak Panchayat Maharashtra has demanded that at least Rs 25 lakh insurance coverage on term deposits should be given in view of increased investment. Interest rates and returns on fixed deposits.
Currently, bank customers are offered insurance coverage of only one lakh rupees irrespective of their deposits or the amount invested in the FD.However, in the recent budget the insurance cover has been raised to Rs 5 lakh.However, this cannot improve the situation, and this amount is still low.
People keep all their hard-earned money in banks to pay for daily expenses, medical expenses. Unfortunately, due to the financial frauds in the banks in the recent past, transactions are restricted and customers do not get fixed deposit money and this creates a huge problem. All the future financial planning of the depositors collapses. From 1993, the customers get only one lakh rupees insurance for term deposit insurance. The Damodaran Committee, appointed in 2011, had recommended raising the insurance cover to five lakh rupees, which seems to be implemented in the recent budget.