‘Only up to Rs 1 lakh, not all money, insured in banks’

This covers savings, fixed, current and recurring accounts, the DICGC, which insures all bank deposits, said in response to a Right to Information (RTI) query filed said.

FPJ BureauUpdated: Wednesday, December 04, 2019, 08:25 AM IST
article-image

Mumbai: Depositors in failed and liquidated banks will get only up to Rs 1 lakh as insurance cover, regardless of the amount in their accounts, according to the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly owned subsidiary of the Reserve Bank of India.

This covers savings, fixed, current and recurring accounts, the DICGC, which insures all bank deposits, said in response to a Right to Information (RTI) query filed said.

"Under the provisions of Section 16 (1) of the DICGC Act, 1961, if a bank fails/gets liquidated, the DICGC is liable to pay to each depositor through the liquidator, the amount of his deposit up to Rs one lakh as insurance cover, for both principal and interest amount held by him in the same right and same capacity at all the branches of a bank taken together," it said.

Asked whether there is any proposal or move under consideration to raise the limit of Rs 1 lakh insured in the bank in wake of the recent PMC Bank fraud, the DICGC said, "The corporation does not have the requisite information."

The corporation covers all commercial banks, including branches of foreign banks functioning in India, local area banks and regional rural banks.

All eligible cooperative banks as defined in Section 2(gg) of the DICGC Act are also covered by the deposit insurance scheme.

"Each depositor in a bank is insured up to a maximum of Rs one lakh as on the date of liquidation/cancellation of bank's license or the date on which the scheme of amalgamation/merger/reconstruction comes into force," the DICGC said.

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

Mumbai: 1.06 lakh passengers travelled by Western Railway's AC local on August 16

Mumbai: 1.06 lakh passengers travelled by Western Railway's AC local on August 16

Mumbai: No food deliveries in plastic boxes

Mumbai: No food deliveries in plastic boxes

Nitin Gadkari, Shivraj Singh Chouhan dropped, major reshuffle in BJP parliamentary panel

Nitin Gadkari, Shivraj Singh Chouhan dropped, major reshuffle in BJP parliamentary panel

Daily Horoscope for Thursday, August 18, 2022, for all zodiac signs by astrologer Vinayak Vishwas...

Daily Horoscope for Thursday, August 18, 2022, for all zodiac signs by astrologer Vinayak Vishwas...

Watch: Opposition raises slogans against Shinde govt before start of monsoon session

Watch: Opposition raises slogans against Shinde govt before start of monsoon session
epaper
Do you wish to receive daily Epaper on your WhatsApp for FREE?
NO
Yes