💜The Government is considering raising the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance cover beyond Rs 5 lakh for bank depositors, M Nagaraju, Secretary of the Department of Financial Services, said on February 17.
⛎This development comes after the Reserve Bank of India (RBI) on February 13 imposed restrictions on operations of the Mumbai-based New India Co-operative Bank due to concerns over its financial stability and liquidity position.
🍃The DICGC, a subsidiary of the RBI and supported by the central government, safeguards small depositors in case a bank faces insolvency or bankruptcy. It offers insurance coverage of up to Rs 5 lakh per depositor, per bank. This coverage extends to savings accounts, fixed deposits, current accounts, and recurring deposits.
🃏In 2021, the Centre allowed customers of failed or stressed banks, which are placed under moratorium, to get their deposits back within 90 days of moratorium. Bank customers can claim their deposit amount (up to Rs 5 lakh) under the deposit insurance scheme of the Deposit Insurance and Credit Guarantee Corporation (DICGC).
