Most people deposit money in the bank thinking that their money is safe. But suppose that the bank in which your money is deposited sinks or goes bankrupt, then what will happen to your money? If you are a bank customer, then you must know that if your bank defaults or sinks, then you get an insurance cover of up to Rs 5 lakh on the amount deposited in the bank. Learn about it here.

This amount is given to you by the Deposit Insurance and Credit Guarantee Corporation (DICGC). DICGC is a wholly owned company of the Reserve Bank. DICGC insures the banks of the country. Earlier, under this act, an amount of up to Rs 1 lakh was given in case of bank sinking or bankruptcy, but the government has increased it to Rs 5 lakh. Foreign banks which have branches in India also come under its ambit.

In how many days the amount is received
In case of bank sinking or closure, DICGC collects all the information related to customers' accounts within 45 days. After this the investigation is done and the amount is given to the customer within the next 45 days. This whole process takes about 90 days i.e. three months.

What types of accounts come under the purview
All types of commercial banks come under its purview. It covers all types of accounts including savings, current, fixed, and recurring deposits. If your account is in a government bank or a big private bank, then your money is considered insured. According to the DICGC website, in the post-August 2022 update, it has been told that it insures a total of 2,035 banks in the country. Apart from this, if you want to know whether your bank is insured or not, then you can find out by visiting https://www.dicgc.org.in/FD_ListOfInsuredBanks.html.

Having accounts in two banks
If your account is in two banks and both banks fail, then in such a situation you get Rs.5 lakh each from both the banks. But if you have two accounts in the same bank, then in this situation you will get only 5 lakh rupees. Apart from this, whether your deposit in the bank is 10 lakhs, or 2 lakhs, if the bank sinks, you will be given only 5 lakhs.
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