Do you have a Savings account in the bank? Do you know how much amount deposited in this savings account is safe? Meaning if the bank gets into trouble due to some reason or the bank sinks, then how safe is your money? Finance Minister Nirmala Sitharaman changed one such rule in the Budget 2020. Your amount up to Rs 5 lakh kept in banks is safe. Now this rule has also been approved by the cabinet. But, what if the bank has more than Rs 5 lakh deposited? Why should we not keep more than 5 lakh rupees in our account? let’s understand.
Cabinet took the decision for you
A big decision was taken in the cabinet in the interest of the bank customer. The customers of the banks in crisis will be able to get the claim of deposit insurance within three months (90 days). If a moratorium has been imposed on a bank, then the customer will be able to withdraw up to Rs 5 lakh within 90 days under the DICGC Act. For this, the government has amended the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act. In the year 2020, the government increased the insurance coverage on deposits (DICGC Insurance Premium) to Rs 5 lakh.
Actually, in Budget 2020, the government had increased the amount of bank guarantee to Rs 5 lakh. Earlier the bank guarantee was only Rs 1 lakh. This rule has also been implemented from 4 February 2020. If a bank sinks now, then up to Rs 5 lakh deposited in your account is safe. The bank will return 5 lakh rupees to you. This cover will be given by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly owned entity of the Reserve Bank.
How is it decided how much money will be received?
There is a guarantee of five lakh rupees in any particular bank including all the accounts of a person. Meaning if you have got FD (Fixed deposit) of Rs 5 lakh in the same bank and also have deposited Rs 3 lakh in savings account in the same, then in case of bank sinking, you will get back only Rs 5 lakh. Whatever money you want in your account, the total amount will be safe only up to Rs 5 lakh. For example, if someone has got Rs 10 lakh in his account and a separate FD is also done. In such a situation, in case of bank sinking or bankruptcy, only your amount of Rs 5 lakh will be insured.
The plan is prepared before the bank sinks?
According to former SBI officer Pradeep Kumar Rai, it is the responsibility of the government to protect the money deposited in the bank. The government cannot allow any bank to sink. As soon as a bank or a company providing financial services falls into the critical category, a plan is prepared to handle it. Under this, steps like canceling the liability of the bank can also be taken. Depositors’ money can also come under this bail-in-clause. By the way, you will be surprised to know that the money of the customers is the number 5 liability. In such a situation, it is natural to be worried.
How can you save your money?
Experts say that hardly any bank in the country has gone bankrupt in the last 50 years. However, you can reduce your risk by keeping your money in different banks. Deposit insurance cover was increased from Rs 1 lakh to Rs 5 lakh. This change was made for the first time after almost 27 years i.e. 1993. This can be increased further in the coming time. Experts say that to protect your money, banks will now pay a premium of 12 paise for every Rs 100 deposited. Earlier it was 10 paise.
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