Q. Which of the following entities is responsible for paying the deposit insurance premium in a banking context?
Answer: The insured bank
Notes: In the context of deposit insurance, the premium is paid entirely by the insured bank, not the government, depositors, or the central bank. This system ensures that banks contribute to a fund that protects depositors in the event of a bank failure, thereby enhancing the stability of the financial system.
Question Source: 📚This question is part of Banking Awareness - 2025-26 course in GKToday's Android Application. The Course comprises 2400+MCQs on Banking & General Financial Awareness with explanation for All Banking Exams of 2025-26 such as IBPS Bank PO, IBPS Bank Clerical, RRB PO and Clerical, SBI PO and SBI Clerical, IBPS Recruitments, RBI Grade B and RBI Banking Examinations. Download the app here.
📌 Question Number: 15 in Bank Deposits & Deposit Insurance in the above course in App.