RBI Boosts Bank Deposit Safety: New Risk-Based Insurance Framework Approved!

• The 620th RBI Central Board meeting in Hyderabad approved a risk-based deposit insurance framework for banks.
• This new system aims to protect consumer interests and provide stronger security for common people's money.
• RBI Governor Sanjay Malhotra presided over the meeting, discussing global economic uncertainty and domestic challenges.
• Discussions also covered the 'Trends and Progress of Banking in India 2024-25' report, focusing on digitization and financial inclusion.
• Senior RBI officials and Board Directors emphasized collaboration between the government and RBI for economic stability.

Why It Matters: RBI approved a risk-based deposit insurance framework, enhancing security for bank deposits and consumer trust.