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    • Question

      Under the existing deposit insurance system in India

      (introduced in 1962), banks pay a flat premium of how much per ₹100 of assessable deposits? 
      A 8 paise Correct Answer Incorrect Answer
      B 10 paise Correct Answer Incorrect Answer
      C 12 paise Correct Answer Incorrect Answer
      D 15 paise Correct Answer Incorrect Answer
      E 20 paise Correct Answer Incorrect Answer

      Solution

      The flat-rate deposit insurance system introduced in 1962 charges banks a premium of 12 paise per ₹100 of assessable deposits. The RBI has now approved a shift to a risk-based deposit insurance framework, which will differentiate premiums based on banks’ financial strength. 

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