Monday, June 14, 2021
Home Latest india news Budget 2020: Deposit insurance increased from Rs 1 lakh to Rs 5...

Budget 2020: Deposit insurance increased from Rs 1 lakh to Rs 5 lakh

Finance Minister Nirmala Sitharaman on Saturday announced that deposit insurance will now be increased to Rs 5 lakh per bank account from the current limit of Rs 1 lakh.

This means that in case of bank failure or liquidation, a depositor will get up to Rs 5 lakh as opposed to previous Rs 1 lakh, before the bank pays other parties.

Currently, as per the RBI guidelines, deposits with all commercial banks and cooperative banks are insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC). Only Primary Cooperative Societies are not covered under DICGC.

Prior to this year’s budget, it was expected that the insurance coverage would be increased to Rs 2 lakh.

FOLLOW LIVE UPDATES | Union Budget 2020

“There is robust mechanism to monitor the health of all scheduled commercial banks and we want to assure depositors that their deposits are absolutely safe,” FM Nirmala Sitharam said while presenting the budget.

This comes after the recent PMC Bank scam where a multi-crore scam came to light following which the withdrawal was initially capped at Rs 1,000, causing panic and distress among depositors.

Most Popular

Uttar Pradesh: TV journalist dies days after claiming threat to life from liquor mafia, Pratapgarh police claim it accident

The ABP Ganga correspondent from Pratapgarh Sulabh Srivastava was found dead under mysterious circumstances on Sunday night. Sulabh suffered...

Parmita Reang : The Singer who had Partnership with TIPS Music Industry

Parmita Reang is a Tripura-based singer, actor, director, and YouTube personality. She's currently approaching the 100k blemish on YouTube. So we hope for the Silver Play Button as soon as possible.

Asaduddin Owaisi slams Centre over misreporting Covid casualties in India, says official numbers nowhere close to real damage

Stating that the government's data on Covid deaths is not validated, the AIMIM MP alleged that every study on Covid casualties points to unrecorded deaths.

Ghaziabad: Man kills parents after they deny him share in property

The accused is identified as Ravi Dhaka who lives in Ghaziabad’s Balram Nagar. Police said Ravi has squeezed the neck of his parents, Surendra Dhaka (70) and Santosh (63), which caused to death at their home on Sunday.