Bank Deposit: Millions of Indians trust banks with their hard-earned savings, but have you ever wondered what happens if the bank faces trouble? While bank failures are rare in India, understanding deposit insurance can bring peace of mind.
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Key Points
- Deposit Insurance Protects Up to ₹5 Lakhs: The Deposit Insurance and Credit Guarantee Corporation (DICGC) safeguards your bank deposits up to ₹5 lakh per account.
- Multiple Accounts, Single Limit: This ₹5 lakh limit applies across all your accounts, regardless of type (savings, current, FD) or bank.
- Safeguards Against Bank Failure: In case of a bank failure, DICGC reimburses depositors up to the insured limit.
- Not All Losses Covered: This insurance doesn’t cover theft, robbery, or natural disasters.
Understanding the ₹5 Lakh Limit
It’s crucial to remember that the ₹5 lakh limit applies per depositor, per bank. This means:
- If you have multiple accounts in the same bank, the total insured amount remains ₹5 lakh.
- If you have accounts in different banks, each bank will insure up to ₹5 lakh per account separately.
What’s Not Covered?
While DICGC insurance provides substantial protection, it’s important to understand its limitations:
- Thefts, Robberies, and Disasters: These losses are generally not covered by DICGC insurance.
- Amounts Exceeding ₹5 Lakh: Any amount exceeding the ₹5 lakh limit is not guaranteed and may be subject to recovery efforts.
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