look news india
Banking Rules: In today's time, everyone has a bank account. People deposit lakhs of rupees in this account. They get FDs of lakhs of rupees done. While investing such a large amount, everyone has only one thing in mind that their money should be safe because they have got government guarantee on it. But suppose the bank in which you deposited money and that bank sinks or goes bankrupt, then what will happen to your money. Will the bank return your entire deposited amount? We all have accounts in not just one but many banks, but very few people will know the rules made for the safety of the money deposited in the bank. If you also do not know these rules, then definitely understand them.
Only this amount is guaranteed
If the bank defaults in any case, then only the deposit amount of up to Rs 5 lakh of the investors is safe. If the bank has more money than this, then it will sink. The reason for this is that the Deposit Insurance and Credit Guarantee Corporation (DICGC) gives insurance guarantee of only up to Rs 5,00,000 on bank deposits. DICGC is a company fully owned by the Reserve Bank.
DICGC insures the banks of the country. The amount of this insurance is not taken from the customer. Its premium is deposited by the bank where the customer has deposited the money. However, this premium is quite low. Let us tell you that earlier under this Act, an amount of up to Rs 1 lakh was given if the bank collapsed or went bankrupt, but then the government increased it to Rs 5 lakh. Foreign banks which have branches in India also come under its purview.
In which banks will the scheme be implemented
All commercial banks in India (foreign banks, rural banks, cooperative banks) get a guarantee of insurance of Rs 5 lakh on deposits. But cooperative societies are outside this scope. But the insurance available under DICGC will give a maximum amount of Rs 5 lakh, which will include principal and interest.
If you have an account in multiple branches of one bank and the bank closes down…
If you have accounts in two banks and both the banks collapse, then in such a situation you will get Rs 5 lakh each from both the banks. But if you have opened accounts in your name in multiple branches of the same bank, then all such accounts will be considered as one. The amount of all these will be added and you will be given a maximum of Rs 5 lakh by combining all of them. Even if you have deposited more than Rs 5 lakh, you will get only Rs 5 lakh. The amount more than Rs 5 lakh will be lost.
What about FD and other schemes?
The insurance amount of Rs 5 lakh covers any kind of deposits in the bank. This means that all the deposits deposited in the bank's savings account, FD, RD or any other scheme are added. After this, a maximum amount of Rs 5 lakh is given. If all your deposits are up to Rs 5 lakh then your money is covered by insurance. But if it is more than this, then you have to bear the loss of any amount above Rs 5 lakh.
Understand with an example
Suppose A has deposited Rs 4,00,000 in a savings account, Rs 2,00,000 in FD and Rs 22,000 in a current account. In such a situation, if all these amounts are added, then he has Rs 6,22,000 deposited in the bank. In such a situation, if the bank collapses, the customer will get a maximum of Rs 5 lakh. He will have to bear a loss of Rs 1,22,000. But if there is Rs 2,00,000 in the savings account, Rs 2,00,000 in FD and Rs 50,000 in the current account, then the total amount is Rs 4,50,000. In such a situation, in case of a bank collapse, you will get the entire amount back because it will remain within the limit of Rs 5 lakh.
In how many days do you get the money
In case of a bank sinking or closing down, DICGC collects all the information related to the customers' accounts within 45 days. After this, an investigation is done and the money is given to the customer within the next 45 days. This entire process takes about 90 days i.e. three months.