4.8 crore accounts will be sunk when bank gets drowned, know whether your deposit is safe or not

New Delhi. When a bank becomes insolvent, the depositor has the only relief covered by the Deposit Insurance and Credit Guarantee Corporation ie Deposit Insurance and Credit Guarantee Corporation. From 4 February 2020, the insurance cover under DICGC has been increased from Rs 1 lakh to Rs 5 lakh. According to ET’s report, the deposits in 4.8 crore accounts are still not safe. In fact, according to the latest annual report of RBI, as of March 2021, out of 252.6 crore accounts, only 247.8 crore have insurance. That is, the amount of 4.8 crore accounts is not insured under DICGC, that means the deposits in these accounts can be drowned by the bank’s sinking. Insurance is not about 49.1% of the amount deposited in banks According to the report, at the end of March 2021, the total insured deposits amounted to Rs 76,21,258 crore. This is only 50.9 percent of the Assessable Deposits of Rs 1,49,67,776. This means that about 49.1 per cent of the amount deposited in banks is not in DICGC cover.Why is not the amount of 4.8 crore accounts safe? DICGC cover is available for all banks, they have to register for this facility and pay the insurance premium. According to the RBI report, banks not being registered with DICGC or not paying premium is the main reason for not covering deposits. Also read- Amitabh Bachchan bought a luxurious house in Mumbai for 31 crores, got stamp duty exemption, know what is special in the house?
DICGC Insurance cover available on these accounts The insurance cover offered by the DICGC works on deposits like savings accounts, FDs, current accounts, RD Azi. However, there are some deposits which are excluded such as deposits of foreign governments, central / state governments, state land development bank with state cooperative bank, inter bank deposits etc. How does deposit insurance work? According to the guidelines of the DICGC, every depositor in the bank is insured up to a maximum of Rs 5 lakh for the amount of principal and interest on the date of cancellation of the bank’s license or on the day of merger or reconstruction. This means that no matter how much money is deposited in the same bank by combining all your accounts, you will get an insurance cover of only Rs 5 lakh. This amount includes both principal and interest amount. If the bank fails, then your principal amount is 5 lakh rupees, then you will only get this amount back and not the interest.

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