If you have more than one bank account, then know how many lakh rupees will be safe now?

If you have more than one bank account, then know how many lakh rupees will be safe now?

New Delhi: The NDA Government 2.0 government led by Prime Minister Narendra Modi (PM Narendra Modi) presented its second budget on Saturday. Finance Minister Nirmala Sitharaman announced in this budget that if a bank goes bankrupt, Rs 5 lakh will be given as a bank account deposit insurance for the account holders of this bank. Earlier there was a provision to give 1 lakh rupees under deposit insurance. For the first time after 1993, the limit of deposit insurance has been increased from 1 lakh to 5 lakh rupees. Since this announcement in the budget speech by the Finance Minister, people want to know that if such a situation comes, will they get a deposit insurance of Rs 5 lakh for more than 1 account. Let's know the answer to this question.

How many banks come under DICGC?

Explain that till March 31, 2019, DICGC had Rs 97,350 crore as deposit insurance, including Rs 87,890 crore surplus. DICGC has spent Rs 5,120 crore on total claim settlement since 1962, which was for cooperative banks. There are a total of 2,098 banks under DICGC, out of which 1,941 banks are cooperative banks. There is a lack of liquidity in most of these banks.

12,040 crores premium received in FY 2019

In FY 2018-19, all commercial banks, including public sector banks, have deposited Rs 11,190 crore as deposit insurance with DICGC, while cooperative banks have deposited only Rs 850 crore. Thus DICGC received Rs 12,040 crore as deposit insurance premium in FY 2019. In the same year, a claim of Rs 37 crore has also been made by cooperative banks. You can easily know one thing from these figures, cooperative banks are more concerned about keeping their savings than commercial banks.

What does the rule say?

Under the provisions of Section 16 (1) of the DICGC Act, 1961, if a bank sinks or goes bankrupt, DICGC is liable to pay each depositor. There will be insurance up to Rs 5 lakh on his deposit. If you have an account with multiple branches of the same bank, then the deposit amount and interest will be added to all the accounts and only deposits up to 5 lakh will be considered safe. In this, both principal and interest are included. Meaning that if there is more than 5 lakhs by adding both, then only 5 lakhs will be considered safe.

Demand to increase insurance after PMC bank case

If you understand in easy language, your total deposit in a bank is 8 lakhs, then only 5 lakh rupees will be considered safe if you default on the bank. The rest will not be guaranteed to meet you. Significantly, after the PMC bank crisis came out, there was a demand to increase the limit of deposit insurance of account holders.

What did Nirmala Sitharaman say in the budget?

Finance Minister Nirmala Sitharaman has said in her budget that DICGC is allowed to raise the deposit insurance limit from Rs 1 lakh to Rs 5 lakh per account. Vishwas Panjiar of Nangia Anderson LLP also says that in such a situation a deposit insurance of Rs 5 lakh will be available on only one account.