Bank deposits may soon be safer, insurance cover likely to rise
The government is reportedly planning to increase the deposit insurance cover for bank customers, which currently stands at ₹5 lakh. This move aims to provide stronger financial protection to individuals in case a bank faces liquidation.At present, the Deposit Insurance and Credit Guarantee Corporation (DICGC), which operates under the Reserve Bank of India, guarantees up to ₹5 lakh per depositor, per bank. This includes the total balance across savings, current, and fixed deposits. The limit was last increased from ₹1 lakh to ₹5 lakh in 2020 after a series of financial crises in certain banks.According to sources in the finance ministry, a proposal to enhance the insurance cap is under active consideration and could be implemented within the next six months. While the exact amount is still being discussed, the revised limit could go up to ₹10 lakh or more, giving depositors greater peace of mind.In the event a bank is declared insolvent, DICGC is responsible for compensating depositors up to the insured amount within a fixed timeline, usually within 90 days of claim processing.

The government is reportedly planning to increase the deposit insurance cover for bank customers, which currently stands at ₹5 lakh. This move aims to provide stronger financial protection to individuals in case a bank faces liquidation.
At present, the Deposit Insurance and Credit Guarantee Corporation (DICGC), which operates under the Reserve Bank of India, guarantees up to ₹5 lakh per depositor, per bank. This includes the total balance across savings, current, and fixed deposits. The limit was last increased from ₹1 lakh to ₹5 lakh in 2020 after a series of financial crises in certain banks.
According to sources in the finance ministry, a proposal to enhance the insurance cap is under active consideration and could be implemented within the next six months. While the exact amount is still being discussed, the revised limit could go up to ₹10 lakh or more, giving depositors greater peace of mind.
In the event a bank is declared insolvent, DICGC is responsible for compensating depositors up to the insured amount within a fixed timeline, usually within 90 days of claim processing.
What's Your Reaction?






