Govt enhanced the bank deposit insurance cover from Rs 1 lakh to Rs 5 lakh


Posted on 12 December 2021


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The government has enhanced the bank deposit insurance cover from Rs 1 lakh to Rs 5 lakh, according to Union Commerce and Industry Minister Piyush Goyal. He said that the money must be returned to the depositor within 90 days. "Earlier there used to be a bank deposit insurance cover of Rs 1 lakh for the deposit of the same amount or more under the 'Deposit Insurance Credit Guarantee Scheme'. It took nearly 10 years. When Prime Minister Narendra Modi was the Chief Minister of Gujarat, he had written to the then Prime Minister Manmohan Singh to extend this limit to Rs 5 lakh. The then government did not do it," Piyush Goyal was cited by ANI as stating. "Now, if a person faces any problem or setback for all of his deposits in a bank, and if the bank is incapable of returning the deposit, then the depositor will get a refund of Rs 5 lakh," he said. Aside from that, the minister promised that the deposited funds will be returned to depositors within 90 days after the bank's liquidation.


Key Point


  • The government has enhanced the bank deposit insurance cover from Rs 1 lakh to Rs 5 lakh, according to Union Commerce and Industry Minister Piyush Goyal. He said that the money must be returned to the depositor within 90 days.