Failing Banks 

In India, when a bank fails, innocent depositors lose out, because deposits in banks are insured only up to Rs 5 lakh by the Deposit Insurance and Credit Guarantee Corporation, which means that one would get a maximum of Rs.5 lakh in case of bank failure, that too after many years. Statistically, only 51 per cent of the total bank deposit base is covered by insurance. Looking at the aftermath of recent bank failures, one finds that even after three and a half years, the assets of PMC Bank are yet to be liquidated; depositors initially got only Rs 1,000 per account, and a total of Rs 1 lakh till now