Thread by @SaketGokhale

How safe are your bank deposits?

Last year, Modi govt. 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?

Thread 👇

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 (1/10)

When the Modi govt. 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With massive uproar from the Congress & the Opposition, the Bill was temporarily withdrawn in 2018. (2/10)

During this period, 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. (3/10)

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. (4/10)

To protect banks that were at risk from the holes created by of Anil Ambani, Nirav Modi etc., the Modi govt. was eyeing the deposits of ordinary Indians to fill up these holes.

Thanks to the Opposition, this was stalled in time (5/10)

Today, your deposits up to 1 lakh are protected & 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 govt.? (6/10)

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 govt. has conveniently taken this money away from RBI. (7/10)

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.

Ur deposits were to protect Ambani & Nirav Modi’s frauds. (8/10)

With the #BankMerger & RBI surplus being taken away, the Modi Govt. must answer whether our deposits are safe & whether it has the money to insure/protect these deposits.

Remember - the protection on ur deposits is still is only up to 1 lakh. (9/10)

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 govt. is - it eyed ur deposits to pay for the sins of corporate defaulters & frauds. (10/10)