Archive · 13 Jun 2025
Guru Bank Depositors Demand Higher Deposit Insurance
Imagine a bank called Guru Raghavendra Bank that had some problems.
People who put money in the bank are worried because they can't get all their money back.
The government has a rule that if a bank fails, it will protect people's money up to 5 lakh rupees.
But many people had more than that in the bank.
Now, they want the government to increase the amount they can get back.
Some people lost a lot of money and are struggling, and some have even passed away while waiting for their money back.
The depositors are asking for help to get their money back.
Depositors of the Guru Raghavendra Sahakara Bank are demanding an increase in deposit insurance coverage.
The current insurance limit is Rs 5 lakh, which depositors find inadequate.
A CBI probe into the alleged misappropriation of Rs 2,500 crore has reportedly not been initiated.
The Enforcement Directorate has attached assets worth Rs 159 crore.
Over 15,000 depositors are yet to receive complete relief.
- Who
- Affected depositors of Guru Raghavendra Sahakara Bank
- What
- Depositors are demanding an increase in deposit insurance coverage from the current Rs 5 lakh limit.
- When
- Five and a half years after the RBI imposed a moratorium in January 2020.
- Where
- Guru Raghavendra Sahakara Bank Niyamita (SGRSBN) in Basavanagudi
- Why
- Because the current insurance limit is inadequate to cover their losses from the bank's alleged misappropriation of funds.
Depositors' Perspective
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Insurance Coverage
Depositors' Perspective
Depositors seek increased deposit insurance coverage to recover their lost savings.
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Fund Recovery
Depositors' Perspective
Depositors are frustrated by the lack of progress in recovering their funds.
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- Bank Name
- Guru Raghavendra Sahakara Bank Niyamita (SGRSBN)
- Moratorium Imposed
- January 2020
- Insurance Limit
- Rs 5 lakh
- Alleged Misappropriation
- Rs 2,500 crore
- Assets Attached
- Rs 159 crore
- Depositors with < Rs 5 lakh
- 31,376
- Depositors with > Rs 5 lakh
- 5,853
- Estimated Losses
- Rs 1,944 crore