The New Money-Back Policy 25 years is a policy by the Indian government that guarantees the full repayment of deposits made by Indian citizens in any authorized bank in the event that the bank becomes insolvent. The policy was launched in October 2018 and is applicable to all banks operating in India.
The policy is in line with the recommendations of the Basel III framework and is aimed at ensuring the safety and stability of the banking sector. It is also intended to protect depositors from losses in the event of a bank failure.
Under the policy, the government will provide a guarantee of up to Rs. 1 lakh (US$ 1,500) per depositor in the event of a bank failure. The guarantee will be payable within a period of seven days from the date of the bank's insolvency.
The policy is applicable to all banks operating in India, including public sector, private sector, and foreign banks.