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Who bears the cost of the deposit insurance premium?
AThe Reserve Bank
BThe state government
CThe insured bank
DThe bank depositor
Answer & Solution
Correct answer: C. The insured bank
1. The depositor pays nothing for the cover.
2. The premium is a cost of being a registered bank.
3. It is borne entirely by the insured bank.
_Source: Deposit Insurance and Credit Guarantee Corporation, Guide to Deposit Insurance and depositor FAQs_
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