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Union Budget 2020-21: Govt permits five-fold increase in deposit insurance cover to Rs 5 lakh per depositor

Deposit insurance coverage will be enhanced from Rs 1 lakh to 5 lakh per depositor

SNS | New Delhi | February 1, 2020 1:37 pm

Union Budget 2020-21: Govt permits five-fold increase in deposit insurance cover to Rs 5 lakh per depositor

A woman stands as she watches a screen displaying a television channel live broadcast of India's Finance Minister Nirmala Sitharaman (C on screen) presenting the 2020 union budget, at the Bombay Stock Market (BSE) in Mumbai on February 1, 2020. (Photo by Punit PARANJPE / AFP)

The government has permitted DICGC to raise the Rs 1 lakh insurance coverage limit to Rs 5 lakh, the Finance Minister Nirmala Sitharaman on Saturday.

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

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

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

(With input from agencies)

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