Do you have a savings account with a bank? Do you know how safe the money deposited in this savings account is? So if the bank goes into trouble for some reason or the bank goes bankrupt, how safe is your money? ..
Mumbai: Do you have a savings account in a bank? Do you know how safe the money deposited in this savings account is? So if the bank goes into trouble for some reason or the bank goes bankrupt, how safe is your money? Finance Minister Nirmala Sitharaman changed a similar rule in the 2020 budget. The 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 five lakh deposits? Why shouldn’t you keep more than Rs 5 lakh in your account? Let’s understand …
The cabinet decided for you
A major decision was taken in the Cabinet in the interest of bank customers. Customers of distressed banks will be able to avail Deposit Insurance in three months (90 days). If a bank is banned, the customer can withdraw Rs 5 lakh within 90 days under the DICGC Act. To this end, the government has amended the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act. In 2020, the government has increased the DICGC Insurance Premium to Rs 5 lakh.
The rules were changed in the 2020 budget
In fact, in the 2020 budget, 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 been in force since 4 February 2020. If a bank goes bankrupt now, up to Rs 5 lakh deposited in your account is safe. The bank will refund you Rs 5 lakh. This cover will be provided by Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly owned entity of the Reserve Bank.
How much money is determined?
There is a guarantee of Rs 5 lakh in any bank with all the accounts of one person. This means that if you have received an FD (Fixed Deposit) of Rs. 5 lakhs in the same bank and have deposited Rs. Whatever money you want in your account, the total amount will be safe up to only Rs 5 lakh. For example, if one has Rs 10 lakh in his account and a separate FD will also be made. In such a case, if the bank goes bankrupt or insolvent, only Rs 5 lakh will be insured.
Is the plan ready before the bank sinks?
According to Pradip Kumar Rai, a former SBI official, the government has a responsibility to protect the money deposited in the bank. The government cannot allow any bank to sink. As soon as a bank or financial services company falls into the critical category, a plan is devised to handle it. Under this, steps can be taken to cancel the liability of the bank. Depositors’ money can also come under this bail clause. By the way, you will be surprised to know that customer money is the 5th liability. It is natural to be anxious in such a situation.
How can you save your money?
Experts say most of the country’s banks have 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 took place for the first time since 1993, almost 27 years later. This may increase further in the coming period. Experts say that to protect your money, banks will now pay a premium of 12 paise on every 100 rupees you deposit. Previously it was 10 paise.