'Clearly, the depositors of cooperative banks need the maximum protection,' notes Tamal Bandopadhyay.Rediff.com Till Infrastructure Leasing & Financial Services Ltd and Diwan Housing Finance Corp Ltd stole the limelight in the second half of 2018 for all the wrong reasons, ballooning bad loans in the Indian banking system held centre stage. The mis-governance of a multi-state urban cooperative bank, which was run by a real estate developer, leading to its collapse, has changed the narrative. Since the Reserve Bank of India clamped down on the bank and restricted withdrawal of deposits (capped at Rs 50,000 now), at least six depositors have died because of stress and the fear of losing their life's savings. There is panic all around and everyone seems to be wondering how safe is depositors's money in the Indian banking system. All deposits are insured, but not for the entire amount. If a bank fails, a depositor (irrespective of the number of deposits) can get up to Rs 1 lakh from … [Read more...] about Is our money in the banks safe?