Frankly, this was a controversy that has been unnecessarily created by some tweets on Twitter. I understand that recently someone had put out a snapshot of an HDFC Bank passbook which had a stamp saying that deposits were insured up to Rs.1 lakh as per government regulations. There are three things that you need to understand here.

· The RBI had issued a circular back in June 2017 that any pass book issued by the banks must contain a stamp clearly mentioning that deposits were insured by the DICGC up to a limit of Rs.1 lakh across all deposits with the bank. This is just to inform customers.

· India was the second country in the world, after the US, to introduce deposit insurance way back in 1962. This limit has been revised from time to time and is currently at Rs.1 lakh. This is the limit across all deposits of a single bank including savings and FDs.

· The deposit insurance amount is available to depositors within 2 months of the liquidation of the bank. These are statutory regulations that have been in existence for a long time and nothing has really changed.

Please note that what HDFC Bank has stamped in the pass books was only a routine activity post the 2017 circular. It is just that it has become a major issue after the PMC Bank crisis.