1.   In normal times, the ending of the blanket guarantee would probably cause barely a ripple.

2.   However, although a government blanket guarantee for deposits may not be entirely desirable, some form of assurance is nevertheless needed on the part of depositors.

3.   Some funds have returned to banks after the government increased SBI rates and provided a blanket guarantee for depositors and creditors.

4.   THE International Monetary Fund has urged that an insurance scheme be put in place to replace the current blanket government guarantee accorded to all deposits in the financial system.

5.   The government will also set up deposit insurance agencies to provide guarantees for customer deposits and to replace the existing blanket government guarantee on all bank deposits.

6.   The government sought to ease concerns that lifting the blanket guarantee would cause a run on savings at weaker institutions such as regional banks.