The government has permitted DICGC to raise the Rs 1 lakh insurance coverage limit to Rs 5 lakh, the Finance Minister Nirmala Sitharaman on Saturday.
The Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the Reserve Bank of India, provides insurance cover on bank deposits.
“Deposit insurance coverage will be enhanced from Rs 1 lakh to 5 lakh per depositor,” the Finance Minister said her Budget speech in Lok Sabha.
At present, the DICGC provides Rs 1 lakh insurance to a depositor regardless of deposit in case the lender fails or liquidated.
(With input from agencies)