Overview: The objective of the paper is to compare the current pricing of deposit insurance for the banks in India against the risk based deposit insurance system. This paper has been organized into three sections. The first section gives an overview of the present deposit insurance system of India.
Thereafter, Section 2 analyzes the different risk-based deposit insurance pricing models and elucidates the pricing based on the same methods for 15 different Indian Banks. Finally, Section 3 forms a case for the introduction of risk-based deposit insurance pricing in India and also mentions some pre-requisites for the same..
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