Big announcement in Budget 2020, even if the bank goes bankrupt, you will get Rs 5 lakh:
As per current DICGC rules, each depositor in a bank is insured up to Rs 1 lakh for both the principal and interest amount on deposits held by him in that particular bank. This includes all deposits held by a person in the current account, savings account, fixed deposits and so on. If the total of all the deposits held by an individual in a single bank exceeds Rs 1 lakh, then he/she will be able to get only Rs 1 lakh inclusive of principal and interest amount if the bank goes bankrupt.
Finance Minister Nirmala Sitharaman has increased the guarantee on bank deposits from Rs 1 lakh to Rs 5 lakh in Budget 2020. Till now the guarantee of the amount deposited in the bank was one lakh rupees. This means that people will now get Rs 5 lakh no matter what amount is in the account when the banks sink. Indeed the Deposit Insurance and Credit Guarantee Corporation (DICG) guarantees the security of deposits in banks. This is a subsidiary unit of the Reserve Bank. However, there is no guarantee of security of the total amount deposited in the bank.
As per the rules of the Reserve Bank, the bank has a guarantee of up to Rs one lakh to the customer for which DICGC is responsible. The same amount is guaranteed on a savings account, a solid deposit (FD) or a current account. This includes interest along with the principal amount. DICGC charges a premium to the banks for guaranteeing this amount.
The joint account will also be considered one
Under the rules, if the accounts are in the same bank, there is a guarantee on the deposit up to one lakh rupees. At the same time the joint account will also be considered as one. In this case, if one account is in your name and the other account is jointly in the name of the spouses, then the guarantee will be given only on a maximum amount of one lakh rupees deposited in one account. The rules of the joint account, however, are that the first account holder is considered the principal account holder. If there is a savings account in your name in the same bank and there is a joint account in the same branch in which your name is in the second or third place in the name of the account holder, then both the accounts will come under a guarantee of one lakh rupees each.
Check the guarantee in this way
It is mandatory for banks to seek a guarantee from DICGC and the bank cannot refuse to accept it. For this the bank pays premium to DICGC on a six month basis. If a bank does not pay the premium to DICGC for three consecutive months, DICGC removes the name of the bank from its list of guarantees. It also gives information in newspapers.
What is the situation in other countries
Guarantees on bank deposits are 42 times higher than in countries other than India. Brazil, one of the BRICS countries, has a guarantee on deposits of up to Rs 42 lakh. There is a guarantee of up to Rs 12 lakh in Russia. In terms of per capita income, the guarantee on deposits in India is very low. In India, per capita income is guaranteed at 0.7 per cent on deposits in banks. In a country like Australia, the guarantee is only 3.7 per cent. That's 4.4 percent in the United States, the world's largest economy. The guarantee figure in Brazil is 7.4 percent. In some other countries of the world there is no limit for this.
However, the deposit insurance coverage limit is applied separately to the deposits in different banks. For instance, let us say you have an account with Bank A and Bank B. Then, both the accounts will be separately insured up to Rs 1 lakh.
Bank Deposit Insurance Hiked To Rs 5 Lakh Per Depositor By
Budget 2020 Read In Gujarati: Click Here
Bank Deposit Insurance Hiked To Rs 5 Lakh Per Depositor By Budget 2020
Full Video Detail In Gujarati: Click Here