Deposit insurance cover increased from Rs 1 lakh to Rs 5 lakh: Sitharaman

Union Finance Minister Nirmala Sitharaman on Saturday said that deposit insurance cover for bank deposits would be increased from Rs 1 lakh to Rs 5 lakh.

"Insurance cover per depositor is Rs 1 lakh. It has been now revised to Rs 5 lakh," she said in Lok Sabha while presenting the Union Budget 2020-21.

The proposal has come in the wake of the crisis at Mumbai-based Punjab and Maharashtra Co-operative Bank. There have been demands to increase the deposit insurance cover.