INSUBCONTINENT EXCLUSIVE:
HDFC Bank has started stamping the passbooks of its account holders.HDFC Bank has started stamping the passbooks of its account holders with
information about the deposit insurance cover
The stamp text by HDFC Bank - India's largest private sector lender in terms of market capitalisation - reads: "As per the Reserve Bank of
India's circular dated June 22, 2017 which requires all Scheduled Commercial Banks, all small Finance Banks and Payment Banks to
incorporate information about 'deposit insurance cover' along with the limit of coverage upfront in the passbook."The stamping of existing
passbooks, which do not carry information about the deposit insurance, by the private sector lender followed circulation of certain content
on WhatsApp and social media
In a response to a user on Twitter, HDFC Bank said such messages "seems to have caused some concern", and the move is "to be fully compliant
with extant RBI guidelines".In a circular released in June 2017, the RBI had directed all commercial, small and payments banks to
"incorporate information about 'deposit insurance cover' along with the limit of coverage, subject to change from time to time, upfront in
the passbooks"."Many banks still do not provide adequate details of the transactions in the passbooks and/ or statements of account to
enable the account holders to cross-check them
In the interest of better customer service, it has been decided that banks shall at a minimum provide the relevant details in respect of
entries in the accounts," the central bank had said.According to the RBI rules, in case of a bank failure each of its depositors is insured
up to a maximum of Rs 1 lakh for both principal and interest amount
The cover of Rs 1 lakh is irrespective of the deposit held by the customer in the savings or fixed deposit account.PMC Bank managing
director Joy Thomas to jail as a probe into an alleged Rs 4,355-crore fraud intensified
Thomas stands accused in a police complaint of criminal breach of trust, forgery and falsification of records in relation to PMC's
dealings with the now bankrupt realty company Housing Development and Infrastructure Ltd (HDIL).The Reserve Bank of India currently allows
PMC Bank depositors to withdraw up to Rs 40,000 from their accounts, a limit increased by the central bank over past few weeks.Last month,
the RBI took control of the functioning of PMC Bank and initiated a forensic audit
It also capped withdrawals by PMC Bank depositors, sparking protests.Follow TheIndianSubcontinent for latest election news and live coverage
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