Last year, Modi government dropped the controversial FRDI Bill which had proposed a “bail in” clause – meaning that your bank deposits would be used to bail out any bank that is at risk of going under.
Wanna know how sneaky they are? ?
In India, bank deposits are protected by the Deposit Insurance & Credit Guarantee Corp. (DICGC).
This means that your bank deposits/FDs up to an amount of 1 lakh are protected & insured. When the Modi government introduced the FRDI Bill, it sought to do away with this deposit guarantee.
With massive uproar from the Congress & the Opposition, the Bill was temporarily withdrawn in 2018.
In the run up to this, Modi did demonetization & harped about “digital payments”.
The PM Jan Dhan account scheme was also rolled out to push more people to keep their money in banks.
The idea behind demonetization & “Jan Dhan” was simply this – to ensure more deposits in the banking system which could be used to bail out a bank using the money of depositors.
That’s another reason why most banks hiked up their “minimum balance” requirements.
To protect banks that were at risk from the holes created by of Anil Ambani, Nirav Modi etc., the Modi government was eyeing the deposits of ordinary Indians to fill up these holes.
Thanks to the Opposition, this was stalled in time.
Today, your deposits up to 1 lakh are protected and insured. The RBI steps in if any bank goes bust & ensures that your deposits are reimbursed up to 1 lakh.
But how will the RBI have money if it keeps transferring its surplus to the government?
With RBI cushion at its minimum today, it’s a scary proposition as to whether it has the $$ to bail out depositors if a major bank fails/goes under.
The Modi government has conveniently taken this money away from RBI.
So remember – “demonetization” & “Jan Dhan” had nothing to do with “digital payments”.
It was only a move to get you to put your money in banks which would be used to bail out the bank when it gets into trouble.
Your deposits were to protect Ambani & Nirav Modi’s frauds.
With the new “bank merger” & RBI surplus being taken away, the Modi Government must answer whether our deposits are safe & whether it has the money to insure/protect these deposits.
Remember – the protection on your deposits is still is only up to 1 lakh.
Now u know why demonetization was done. Now u know the truth of “Jan Dhan”. Now u know why your bank keeps increasing your minimum balance requirements.
This is how sneaky Modi government is – it eyed your deposits to pay for the sins of corporate defaulters and frauds.
This post was first published by Saket Gokhale on his Facebook Timeline.
