Legal Question in Banking Law in India

Dear sir / madam,

I have to like deposit of 2 Lacks ( 2,00000 ) to pandyan grama bank. Somebody�s saying this bank is rural bank. So your money is not safety, you better deposit in nationalized bank like this.

But I seen this bank website, there is showing Pandyan Grama Bank ( Wholly Owned by Govt.of India. Of Tamilnadu & Indian Overseas Bank )

Question�s:

1. If pandyan grama bank get loss, who will give the public deposit amount?

2. If nationalized bank get loss, who will give the public deposit amount?

3. If private bank get loss, who will give the public deposit amount?

Thanks,


Asked on 1/30/12, 5:29 am

3 Answers from Attorneys
J. Radhakrishnan independent Practice

Deposits in rural banks are also covered by the Deposit Insurance corporation of Govt. Of India.

We understand that the insurance covers now more than Rs.1 Lakh. So also is the case of deposits with a Scheduled Bank whether it is a nationalized Bank or private sector Bank. You can safely invest in FD with the Rural Bank. Reserve Bank won't allow any bank's loss to deny the repayment of deposits of customers.

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Answered on 1/30/12, 5:34 pm
RAJIV GUPTA (Cell: +91 9811284735) [email protected]

as you have satisfied yourself that the bank is owned by the government and also a nationalized bank, you may or may not transfer the deposits.

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Answered on 1/30/12, 10:30 pm
Aniruddha Pawse Aniruddha.P.Pawse Advocates

1) No one

2)Govt

3) insurance company if deposits have been insured by the Bank

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Answered on 2/02/12, 1:23 am


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