The government allows a fivefold increase in deposit insurance coverage to Rs 5 lakh per depositor

NEW DELHI: The finance minister said Saturday that the government has allowed DICGC to increase deposit insurance coverage five times to Rs 5 lakh.

The Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly owned subsidiary of the Reserve Bank of India, provides insurance coverage for bank deposits.

Deposit insurance coverage will improve from Rs 1 lakh to 5 lakh per depositor, the Finance Minister said in her Budget speech at Lok Sabha.

Currently, the DICGC provides Rs 1 lakh insurance to a depositor, regardless of the deposit in case the lender fails or is liquidated.

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