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How much money will you get if your bank goes bust?

The Rs 5-lakh cover brings around 93 per cent of all deposit accounts and 34 per cent of the value of deposits under it

Tamal Bandyopadhyay 

Tamal Bandyopadhyay

Finally, the deposit insurance cover has been raised five-fold to Rs 5 lakh — a huge comfort for small depositors, some of whom have been staring at losing their money kept in fraud-hit and mismanaged cooperative banks. Now if any bank fails, the depositors will get as much as Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the Reserve Bank of India (RBI).

It took 17 years and a Rs 6,670-crore fraud in multi-state Punjab and Maharashtra Co-operative Bank to raise the cover. The latest revision, sixth since it started in ...

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First Published: Sun, February 09 2020. 21:15 IST
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