Bank of India(BOI) Shuts 400 Day Special FD Scheme, Cuts FD Interest Rates After Repo Rate Cut

 

Bank of India (BOI) has announced a key update for its fixed deposit (FD) customers in which the bank has withdrawn its special 400-day fixed deposit scheme that offered an attractive interest rate of up to 7.30%. Alongside this, Bank of India has revised interest rates across various FD tenures. These new rates will be effective from April 15, 2025.

Bank of India new FD interest rates For fixed deposits less than Rs. 3 crore, the updated Bank of India FD interest rates are as follows:

91 days to 179 days: 4.25% 

180 days to less than 1 year: 5.75% 

1 year: 7.05% 

Above 1 year to 2 years: 6.75%

The rates remain competitive, especially for bulk deposits, though slightly lower than previous offerings. This aligns with other public sector banks following the RBI repo rate cut in early April 2025. Additional Interest for Senior and Super Senior Citizens To cater to senior citizens, Bank of India continues to offer preferential interest rates

The rates remain competitive, especially for bulk deposits, though slightly lower than previous offerings. This aligns with other public sector banks following the RBI repo rate cut in early April 2025. 

Additional Interest for Senior and Super Senior Citizens To cater to senior citizens, Bank of India continues to offer preferential interest rates

Senior Citizens (below ₹3 crore): Additional 0.50% interest on FDs of 6 months & above

Super Senior Citizens: An Additional 0.65% interest on the same tenure These benefits make BOI fixed deposits for senior citizens a relatively attractive savings option despite the overall rate reduction.

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Check Latest Fixed Deposit Rates for All Major Banks in India

Fixed Deposit (FD) is a popular investment option in India, providing safe returns with guaranteed interest. Different banks offer varying interest rates on FDs based on tenure, amount, and the customer’s profile (regular or senior citizen). Here, we provide the most up-to-date FD interest rates from major banks across India. You can check FD Interest Rate of all Banks in India – Government Banks and Private Banks here.

Public Sector Banks FD Interest Rate 2025 [Updated]

• State Bank of India (SBI) FD Interest Rate
• Punjab National Bank (PNB) FD Interest Rate
• Bank of Baroda (BOB) FD Interest Rate
• Union Bank FD Interest Rate
• Canara Bank FD Interest Rate
• Bank of India (BOI) FD Interest Rate
• Central Bank of India FD Interest Rate
• Bank of Maharashtra (BOM) FD Interest Rate
• Punjab and Sind Bank (PSB) FD Interest Rate
• UCO Bank FD Interest Rate
• Indian Overseas Bank (IOB) FD Interest Rate
• Indian Bank FD Interest Rate

Private Banks FD Interest Rate

HDFC Bank	ICICI Bank	Axis Bank
IDBI Bank	Bandhan Bank	YES Bank
Tamilnad Mercantile	DCB Bank	South Indian Bank
Federal Bank	Indusind Bank	IndusInd Bank
J&K Bank	Karnataka Bank	Karur Vysya Bank
Kotak Mahindra Bank	RBL Bank

Senior Citizen FD Interest Rate & Super Senior FD Interest Rate

Senior citizens often enjoy higher FD interest rates than regular customers, with additional benefits such as higher returns and special tenure plans. Normally Banks offer 0.25% to 0.75% extra FD interest rate for Senior Citizens and Super Senior Citizens. You can check Senior Citizen FD Interest Rate & Super Senior FD Interest Rate of all banks via links provided above.

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Know Maximum Limit and Rules, TDS Limit on FD Increased

For general (non-senior) individuals, the Union Budget 2025 has suggested raising the Tax Deduction at Source (TDS) cap on interest received from fixed deposits. Since it will enable them to save some money, this is good news for all Indian citizens.

The TDS limit on FD interest is now Rs. 40,000. The present Rs.40,000 limit will be increased to Rs.50,000 per fiscal year. The modifications will take effect on April 1, 2025. Let's now examine TDS and its regulations.

Understanding TDS on Fixed Deposits

Banks deduct TDS when the interest paid to an account holder exceeds a certain threshold in a financial year. This limit varies for senior citizens and general account holders. Currently, banks apply a 10% TDS rate on fixed deposit interest if the depositor’s PAN is available. If PAN details are missing, the rate increases to 20%.

Financial institutions or banks offering fixed deposit investment schemes are responsible for deducting TDS on interest income. The TDS deduction happens automatically at the end of each financial year when the interest is credited to the account, rather than at the time of maturity of the fixed deposit.

TDS Rules for Joint Fixed Deposit Accounts

For fixed deposits held in joint names, the primary account holder is responsible for TDS deductions. The second holder does not face any TDS liability related to the fixed deposit.

When is TDS Applicable?

TDS on fixed deposit interest is deducted only when the total interest earned exceeds the specified threshold in a financial year.

The bank or financial institution holding the fixed deposit is responsible for deducting the applicable TDS.

If the depositor has submitted Form 15G (for non-senior citizens) or Form 15H (for senior citizens), TDS will not be deducted, provided the total income is below the taxable limit.

With the new TDS threshold increase, general citizens will be able to earn up to Rs.50,000 in interest from fixed deposits without facing TDS deductions from April 2025 onwards. This move is expected to benefit small investors and fixed deposit holders by reducing their tax burden.

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49.1% bank deposits are not under Rs 5 lakh insurance cover: Check if your bank deposit is protected

When a bank fails, the only respite a depositor has is the insurance cover offered by the DICGC. This cover was raised to Rs 5 lakh from Rs 1 lakh, effective from February 4, 2020.

According to the Reserve Bank of India's (RBI) latest annual report the number of fully protected accounts in banks stood at 247.8 crore at end March 2021, which is 98.1 per cent of the total number of accounts (252.6 crore). What this means that around 4.8 crore accounts do not enjoy the deposit insurance cover offered by Deposit Insurance and Credit Guarantee Corporation (DICGC).

Deposit amount coverage much lower than account coverage

As per the annual report released by RBI the total insured deposits stood at Rs 76,21,258 crore as at end-March 2021. This is only 50.9 per cent of the assessable deposits of Rs 1,49,67,776 crore. What this means that around 49.1% of the amount deposited with banks do not enjoy the DICGC cover.

While the deposit insurance cover on bank deposits has been raised to Rs 5 lakh, not all deposits are covered. Though this cover is available to all banks, they have to register for this facility and pay the corresponding insurance premium to keep enjoying the financial protection under this deposit insurance.

Banks not being registered with DICGC or not paying premium are the main reasons for deposits not being covered, according to the RBI annual report. However, this can also happen in case of a higher deposit amount held by an account holder in the same right and capacity. For instance, if you hold a total deposit of Rs 25 lakh in same right and capacity then the maximum cover will remain only Rs 5 lakh and remaining R s20 lakh deposit will not have this protection.

Failure mainly in co-operative and local area banks

As per the annual report, five cooperative banks and one LAB (or Local Area Bank) were liquidated during the year 2020-21.

As per the un-audited data, the DICGC has processed claims amounting to Rs 993 crore during 2020-21 with a view to ensuring payment to insured depositors of liquidated banks under the prevailing pandemic situation. Of Rs 993 crore, the Corporation has settled claims amounting to Rs 564 crore in respect of nine co-operative banks during 2020-21.

An amount of Rs 330 crore has been settled in case of one cooperative bank in April 2021. However, the net outgo of funds towards settlement of claims from the Corporation was also lower as there was a recovery of Rs 568 crore during 2020-21.

Added to this, there was an amalgamation of a struggling private sector bank Lakshmi Vilas Bank and a foreign bank Development Bank of Singapore (DBS) during 2020-21.

Check if your bank deposit is protected

Deposit insurance provided by the DICGC covers all insured commercial banks, including LABs, PBs, SFBs, RRBs and co-operative banks. As per the report, the number of registered insured banks stood at 2,058 as on March 31, 2021. This includes 139 commercial banks out of which 43 are Regional Rural Banks (RRBs), 2 are Local Area Banks (LABs), 6 are Payment Banks (PBs) and 10 are Small Finance Banks. Apart from this 1,919 co-operative banks are also registered out which 34 are State Co-operative Banks (StCBs), 347 are District Central Co-operative Banks (DCCBs) and 1,538 are Urban Co-operative Banks (UCBs).

Despite this there are good number of banks mostly co-operative which are not registered with DICGC to offer the insurance cover to their depositors. 

If you have a deposit in a co-operative bank, you need to check if it is registered for the deposit insurance. 

You can click here to find out 

https://www.dicgc.org.in/FD_ListOfInsuredBanks.html

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Procedure to Settle a Claims in Deceased Depositors Account.

(1) Settlement of Claims in Single Account with or without Nomination.

(a) SB / CD account with Nomination – The balance amount will be paid to the nominee on verification of nominee’s identity (such as PAN Card, Election ID Card, Aadhaar Card, MANREGA Card, Passport, Driving License etc) and proof of death of depositor.

(b) SB / CD account without Nomination -  The balance amount will be paid to the legal heir(s) (or any one of them as mandated by all of the legal heirs) on verification of the authority of the legal heir(s) and proof of death of depositor.

(c) Term Deposit account with Nomination – The balance amount will be paid to the nominee on verification of nominee’s identity (such as PAN Card, Election ID Card, Aadhaar Card, MANREGA Card, Passport, Driving License etc) and proof of death of depositor on maturity date of deposit.

(d) Term Deposit account without Nomination -  The balance amount will be paid to the legal heir(s) (or any one of them as mandated by all of the legal heirs) on verification of the authority of the legal heir(s) and proof of death of depositor on maturity of deposit.

(e) Premature termination of Term Deposit account with nomination – Premature termination of term deposit account as per terms of contract will be permitted at the request of the nominee on verification of nominee’s identity (such as PAN Card, Election ID Card, Aadhaar Card, MANREGA Card, Passport, Driving License etc) and proof of death of depositor.

(f) Premature termination of Term Deposit account without nomination – Premature termination will be permitted on joint request by all legal heirs (or any of them as mandated by all the legal heirs) as per the terms of the contract on verification of the authority of the legal heirs and proof of death of depositor.

(2) Settlement of Claims in Joint Account with or without Nomination and without Survivorship Mandate (operated jointly).

(a) SB / CD account with Nomination.

(i) In the event of death of one (or more but not all) of the joint account holders, the balance amount will be paid jointly to survivor(s) and the legal heirs of the deceased joint account holder (or any of them as mandated by all the legal heirs) against their joint claim on verification of the authority of the legal heirs and proof of the death of the depositors.

(ii) In the event of death of both / all joint account holders, the balance amount at the time of death of the depositors will be paid to the nominee on verification of nominee’s identity (such as PAN Card, Election ID Card, Aadhaar Card, MANREGA Card, Passport, Driving License etc) and proof of death of depositors.

(b) SB / CD account without Nomination.

(i) In the event of death of one (or more but not all) of the joint account holders, the balance amount will be paid jointly to survivor(s) and the legal heirs of the deceased account holder (or any one of them as mandated by all the legal heirs) against their joint claim on verification of the authority of legal heirs and proof of death of depositor.

(ii) In the event of death of both / all joint account holders, the balance amount will be paid jointly to the legal heir(s) of all the deceased depositors (or any of them as mandated by all the legal heirs) on verification of authority of the legal heirs and proof of death of all the depositors.

(c) Term Deposit Account with Nomination.

(i) In the event of death of one (or more but not all) of the joint account holders, the balance amount will be paid jointly to survivor(s) and the legal heirs of the deceased joint account holder (or any of them as mandated by all the legal heirs) on verification of identity of the legal heirs and proof of the death of the depositors on maturity of the deposit.

(ii) In the event of death of both / all joint account holders, the balance amount at the time of death of the depositors will be paid to the nominee on verification of nominee’s identity (such as PAN Card, Election ID Card, Aadhaar Card, MANREGA Card, Passport, Driving License etc) and proof of death of depositors on maturity of the deposit.

(d) Term Deposit Account without Nomination.

(i) In the event of death of one (or more but not all) of the joint account holders, the balance amount will be paid jointly to survivor(s) and the legal heirs of the deceased account holder (or any one of them as mandated by all the legal heirs) against their joint claim on verification of the authority of legal heirs and proof of death of depositor on maturity of the deposit.

(ii) In the event of death of both / all joint account holders, the balance amount will be paid jointly to the legal heir(s) of all the deceased depositors (or any of them as mandated by all the legal heirs) on verification of authority of the legal heirs and proof of death of all the depositors on the maturity of the deposit.

(e) Premature Termination of Term Deposit account with Nomination.

(i) In the event of death of one (or more but not all) of the joint account holders, premature termination of term deposit will be permitted against joint request of the survivor(s) and the legal heir(s) (or any one of them as mandated by all legal heirs) as per the terms of contract on verification of identity of the legal heirs and proof of death of depositor.

(ii) Premature termination of term deposit account as per the terms of contract will be permitted at the request of the nominee on verification of nominee’s identity (such as PAN Card, Election ID Card, Aadhaar Card, MANREGA Card, Passport, Driving License etc) and proof of death of depositors.

(f) Premature Termination of Term Deposit account without Nomination.

(i) In the event of death of one (or more but not all) of the joint account holders, premature termination of term deposit will be permitted against joint request by the survivor(s) and the legal heir(s) of all the deceased depositors (or any one of them as mandated by all legal heirs) as per the terms of contract on verification of authority of legal heirs and proof of death of depositor.

(ii) In the event of death of both / all the joint account holders, premature termination of term deposit will be permitted against joint request by all legal heirs of the deceased depositors (or any one of them as mandated by all legal heirs) as per the terms of contract on verification of authority of legal heirs and proof of death of depositors.

(3) Settlement of Claims in Joint Account with mandate “Either or Survivor” / “Former or Survivor” / “Anyone or Survivors” / “Latter or Survivor” with or without nomination.

(a) SB / CD account with Nomination.

(i) In the event of death of one (or more but not all) of the depositors, the balance amount will be paid to survivor(s) on verification of proof of death of the depositor.

(ii) In the event of death of both / all the joint depositors, the balance amount will be paid to the nominee on verification of nominee’s identity (such as PAN Card, Election ID Card, Aadhaar Card, MANREGA Card, Passport, Driving License etc) and proof of death of all depositors

(b) SB / CD account without Nomination.

(i) In the event of death of one (or more but not all) of the deposits, the balance amount will be paid to survivor on verification of proof of death of the depositor.

(ii) In the event of death of both / all the joint depositors, the balance amount will be paid jointly to the legal heirs (or any one of them as mandated by all the legal heirs) on verification of authority of legal heirs and proof of death of all depositors.

(c) Term Deposit Account with Nomination.

(i) In the event of death of one (or more but not all) of the depositors, the balance amount will be paid to survivor(s) on verification of proof of death of the depositors on maturity of deposit or as agreed at the time of opening of deposit.

(ii) In the event of death of all joint depositors, the balance amount will be paid to the nominee on verification of nominee’s identity (such as PAN Card, Election ID Card, Aadhaar Card, MANREGA Card, Passport, Driving License etc) and proof of death of all depositors on maturity of deposit or as agreed at the time of opening of deposit.

(d) Term Deposit Account without Nomination.

(i) In the event of death of one of the depositors (or more, but not all), the balance amount will be paid to the survivors on verification of proof of death of the depositor on maturity of deposit or as agreed at the time of opening of deposit.

(ii) In the event of death of all joint depositors, the balance outstanding will be paid to the legal heir(s) of all the deceased depositors (or any one of them as mandated by all the legal heirs of joint holders) on verification of authority of legal heirs and proof of death of all depositors on maturity of deposit.

(e) Premature termination of Term Deposit Account.

(i) In the event of the death of one (or more but not all) of the depositor(s), the balance amount will be paid to the survivor(s) after premature termination of term deposit account on verification of proof of death of the depositor(s), only if, there is a joint mandate from all the depositors to this effect given either at the time of placing the fixed deposit or subsequently during the tenure of deposit or there is suitable clause in this regard in deposit account opening form which is accepted and signed by all the depositors at the time of opening of fixed deposit account.

(ii) In the event of the death of one (or more but not all) of the depositor(s), the balance amount will be paid jointly to survivor(s) and the legal heir(s) of the deceased joint account holders (or any of them as mandated by all the legal heirs) against their joint claim on verification of authority of the legal heir(s) and proof of death of depositor(s). If there is no joint mandate from all the depositor(s) / suitable clause in account opening form to this effect as stated in above para ((3) (e) (i)).

(iii) With Nomination – In the event of death of all the joint depositors, the nominee will have right to seek premature termination of term deposit account as per the terms of the contract on verification of claimant’s identity (such as PAN Card, Election ID Card, Aadhaar Card, MANREGA Card, Passport, Driving License etc) and proof of death of all depositors.

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Sukanya Samriddhi vs FD vs RD vs PPF vs MF vs insurance: Suitability and pros & cons

From study to choosing a desirable career to marriage, upbringing a child is a huge task, which, apart from care, also needs money. As the rate of inflation in education is more than the rate general inflation, you need to chalk out a financial plan to meet the expenses. There are many financial products available, which you may use judiciously to meet your financial targets. There are also some exclusive financial products available for girl child that the government launched as a part of its ‘Beti Bachao Beti Padhao’ campaign.

Sukanya Samriddhi Yojana

Small deposit scheme Sukanya Samriddhi Yojana (SSY) is aimed at meeting the expenses of higher education and marriage of your daughter. The parents or legal guardians of a girl child may open an account till 10 years of the age of the girl. The account may be closed after 21 years. However, normal premature closure is allowed after completion of 18 years, provided that girl gets married.

Currently, the maximum amount may be invested in an SSY in a financial year is Rs 1,50,000. The amount invested is eligible for tax deductions u/s 80C as well as the interests earned and the maturity amounts are also tax free.

The government declares the rate of interest for SSY accounts on quarterly basis and generally keeps it higher than other small savings schemes like NSC, KVP, PPF etc. At present, the rate is 8.5 per cent, which if continues to remain same, would generate a corpus of Rs 74,96,802 at the end of 21 years, if Rs 1,50,000 is invested at the beginning of every year for 15 years.

Sukanya Samridhhi Yojona is a very suitable product for girl child, as it is tailor made for them. It also provides handsome rate of return and overall tax benefits. However, the long tenure and restrictions on withdrawals make it an illiquid investment.

Bank Fixed Deposits

For investing in fixed deposits (FDs) you need to have lump sum money in your hand. FDs are one of the most popular choices in India. Most people invest in FDs because they are easy to get from the banks that have created immense trust in the mind of the account holders. However, FDs don’t provide protection against inflation and the interest earned are also taxable.

With highest interest rates on FDs varying between 6 and 7 per cent apart from tax and inflation inefficiency, FDs may not create enough wealth that is needed for your daughter’s higher education and marriage purpose. So, you may use FDs only to park small amount of excess money to meet the associated expenses.

Recurring Deposits

Although, recurring deposits (RDs) are a modified version of FDs, where you may invest periodically on small amount instead of lump sum one, but it is a better option to park the small amount of money that you may save every month. As it may not be convenient for you to save large amount in FD regularly, the small amounts in vested in RD may come handy when you need some lump sum money for expenditure. However, like FDs, RDs are also tax and inflation inefficient.

Public Provident Fund (PPF)

It is a good idea to open a PPF account in the name of your girl child and divide the money you want to invest in it between your and your daughter’s account (maximum Rs 1,50,000 may be invested by a PAN card holder, be it in one account or more accounts). However, it would be even better if you open an SSY account for your daughter instead of bifurcating your investment for retirement. Otherwise, with tax deductions on investment and tax-free interest and maturity, along with pretty good interest rate, PPF is a good vehicle for accumulating a corpus.

Mutual Fund (MF)

As the goal of higher education and marriage of your daughter are a long-term goal, you may start SIPs in equity mutual funds safely to get a return that beats the inflation. But you should not get panicked by daily turmoil in markets, which affect the NAVs of mutual funds in short term. Start monitoring the NAVs of the funds a year before your daughter is about to get admission for higher education or about to get married, so that you may redeem you funds at good value. There are also some child specific funds available with longer lock-in period and higher exit loads if redeemed before the duration for which the fund is taken to discourage early withdrawal of money for any other purpose than meeting the needs of the child.

Insurance

There are many child insurance products available in the market in the form of money back plans or regular plans. One of the important feature of child insurance is the premium waiver benefit (PWB), which allows the insurance to continue even without paying premium in case of untimely demise of the earning member, who used to pay the premium. However, there is no point in taking insurance on child’s life, as it is not the motive of child insurance to get lump sum money in case of death of the insured child. So, it’s better to take insurance on your life, making daughter the nominee.

So, along with other investments, better to take a term insurance plan. Otherwise, even a unit-linked insurance plan (ULIP) would be a good option. There are, however, options available to take PWB in some endowment plans even on your life, which also provide additional risk covers like instant payout of sum assured (SA) along with yearly payout of certain percentage of SA apart from the maturity benefits, if taken judiciously with term rider, accidental rider, PWB etc. For example, in case of a 20-year policy of Rs 10 lakh SA, taken with all the riders, if the insured person dies due to accident in the very first year, total payout would be as much as 6 times the SA, that is Rs 60 lakh. Such plans may prove even better than term plans because the nominee would get immediate lump sum payment to clear debts, if any, and to make some investments, then regular yearly payments to bear child’s expenses and finally, lump sum payment again on maturity to meet expenses for higher education and marriage. In case the life insured survives the full policy term, he or she will get lump sum maturity benefit, which, along with bonus, would be around twice the SA, that is around Rs 20 lakh. But such plans are expensive due to high risk cover.

Source - Financial Express

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NPAs on the decline, credit growth rising, says Arun Jaitley after key review meet with PSBs

Finance minister Arun Jaitley on Tuesday said bad loans for public sector banks are on a decline and that the economy is passing through a phase of good growth.

“Banks are very confident that under the circumstances they will maintain liquidity for the various sections of the economy, the liquidity which is required,” Jaitley said after reviewing the annual performance of public sector banks. The FM also inaugurated a website of public sector banks — psbloansin59minutes.com — where MSMEs can avail loan of up to Rs 1 crore in less than an hour.

Banking activity is bound to pick up as consumption has moved up and growth figures are encouraging, he said. Jaitley also launched the Financial Inclusion Index. Financial services secretary Rajiv Kumar in a presentation said banks expect cash recoveries of Rs 1.80 lakh crore in 2018-19. PSBs will also be able to monetise non-core assets worth Rs 18,665 crore, he said. “There is equal focus on arresting fresh slippages,” he added.

Earlier in the day, Jaitley told chief executives and senior officials of state-run financial institutions that banks must strive to be always seen as institutions of clean and prudent lending.

Jaitley exhorted the banks to ensure all steps at their end for clean lending and effective action in cases of fraud and wilful default to justify the trust reposed in banks, the finance ministry said in a statement. He observed that formalisation of Indian economy through the Insolvency and Bankruptcy Code (IBC), GST, demonetisation and digital payments have enabled better assessment of financial capacity and risks.

Coupled with inclusive growth through massive financial inclusion, this has unlocked purchasing power which will drive India’s growth,” Jaitley said, adding that this should help India sustain a growth rate of around 8%. The FM flagged the need to revisit efficacy of the Debts Recovery Tribunal mechanism, particularly in view of long lead times in disposal of cases. “Amendment of IBC to debar wilful defaulters has had the unintended positive consequence of defaulting borrowers stepping forward to make payment to participate in the resolution process,” he said.

The perception regarding the health of PSBs has become more positive as banks have posted positive results in terms of resolution, recovery, provisioning and credit growth, Jaitley said.

Source- Economic Times

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Government clears bills to amend IBC and withdraw FRDI

The government is likely to withdraw the Financial Resolution and Deposit Insurance (FRDI) Bill, 2017 in the ongoing session of Parliament to calm jittery investors and avoid any popular backlash before the 2019 elections.

Introduced in Lok Sabha on August 11, 2017, the proposed bill had made depositors nervous due to a 'bail in' clause.

In a bid to prevent banks from going bankrupt, the draft bill proposed 'writing down of liabilities' (referred by many as a bail-in), which most thought had potential to harm deposits in savings bank accounts.

Authorities had also planned to raise security cover for bank deposits, amid fears over deposits being used to ‘bail in’ ailing banks in extreme situations.

At present, each depositor is protected only up to a limit of Rs 1 lakh by the Deposit Insurance and Credit Guarantee. Deposit beyond Rs 1 lakh does not have any protection and is treated at par with claims of unsecured creditors as of now.

The bill had proposed to set up a resolution corporation to monitor financial firms, anticipate the risk of their failure, take corrective action and work out a resolution plan. In case of a failure, the proposed corporation would also provide deposit insurance up to a certain limit, which was not specified.

The bill had also proposed that once a financial services company, including a bank, slips into critical category, the Resolution Corporation would take over the firm and prepare a resolution during a year, extendable by another 12 months.

government had assured depositors several times that it was committed to protecting the interest of them and financial institutions and had slammed opposition parties for triggering “a needless controversy.”

It had said that 70 per cent deposits are in public sector banks and most of the rest in well-capitalised private banks, so there's no likelihood of losing deposits for over 98 per cent depositors. The remaining will be subject to a 'bail in' only if the depositors consent.

“In an election year, the government does not want to do anything which appears to be anti-people,” said a source.

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