Mumbai: The bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india (RBI) is taking into consideration raising the deposit insurance limit past the current Rs 5 lakh. As according to a file in the enterprise preferred, the critical financial institution is actively considering booming the deposit coverage limit for bank deposits from the present Rs five lakh inside the next six months.
It's miles to be referred to that during february of this 12 months, following the new india Co-operative bank scam, branch of economic services Secretary M. Nagaraju had announced that such an offer was in the works.
"The point of approximately growing insurance... That is beneath active attention. As and when the authorities approve, we will notify it," he had told journalists at a press conference in the presence of Finance minister Nirmala Sitharaman.
How does deposit insurance assist depositors and mitigate fears in cases of financial institution failure?
A deposit coverage declaration gets caused when a lender goes down, and over the years, the Deposit Insurance and Credit Guarantee Corporation (DICGC) has paid out such claims. The body collects charges from banks for the quilt it offers, and a majority of the claims have had to be performed in case of cooperative creditors.
The DICGC insured limit was raised from Rs 1 lakh to Rs 5 lakh in 2020.
It may be cited that following the p.c bank scam, the DICGC insured limit was raised to Rs five lakh from Rs 1 lakh in 2020. The improved deposit insurance cover of Rs five lakh came into effect on february 4, 2020. Every bank used to pay 10 paise as an insurance top rate in line with Rs 100 of deposit. It became raised to 12 paise in keeping with Rs one hundred in 2020. It can't be more than 15 paise at any point in time in line with the Rs 100 deposit. The boom changed into finished after a gap of 27 years because it has been static on the grounds since 1993..jpg)
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