Economics · Banking Regulations
Retail banking consumers have a fundamental requirement for liquidity and safety. Which regulatory framework in India ensures that a portion of the consumer's deposits is protected even if the bank faces financial insolvency?
- 1The Priority Sector Lending (PSL) targets mandated for commercial banks
- 2The Cash Reserve Ratio (CRR) kept by banks in physical currency
- 3The Deposit Insurance and Credit Guarantee Corporation (DICGC) coverage✓
- 4The Statutory Liquidity Ratio (SLR) maintained with the Reserve Bank of India
Correct answer
The Deposit Insurance and Credit Guarantee Corporation (DICGC) coverage
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