- The Finance Ministry is looking to raise the current limit of ₹5 lakh for deposit insurance.
- Money deposited by bank customers is insured under the Deposit Insurance and Credit Guarantee Corporation Act, 1961 by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
- The deposit insurance limit was increased to ₹5 lakh in 2020 from ₹1 lakh. 1 Lakh was fixed in 1993.
- When a bank fails due to any uncertainties, the DICGC acts as a guard to secure the money of depositors.
- The government is planning to increase the deposit insurance limit after the Reserve Bank of India (RBI) placed curbs on the Mumbai-based New India Co-operative Bank for lack of liquidity.
Government is planning to raise the deposit insurance limit from ₹5 lakh
ByCurrent Hunt Team
Feb 22, 2025