Deposit insurance coverage raised to Rs 5 lakh from current Rs 1 lakh: Nirmala Sitharaman

NEW DELHI: Finance Minister Nirmala Sitharaman increased on Saturday the deposit insurance coverage for bank customers to Rs 5 lakh from Rs 1 lakh before.

The Deposit Credit Guarantee Corporation has been allowed to increase the coverage of deposit insurance to Rs 5 lakh per Rs 1 lakh depositor, Sitharaman said when presenting the Union.

Clarifying that depositors' money is absolutely safe, Sitharaman said there is a robust mechanism to monitor the health of all scheduled commercial banks and that all money is safe.