Have an account in several branches of the same bank and if the bank goes bankrupt, how much money will you get? Know the rules of insurance available on bank deposits
Insurance cover up to Rs 5 lakh is available under DICGC on the amount deposited in the bank. But how is this amount calculated, what happens to FD-RD and other types of deposits? Know here the answer to every question you want to know.
Everyone has money in the bank. Some money is kept in a savings account and some is invested in FD, RD, or any other scheme. This deposit gets an insurance cover of up to Rs 5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC). DICGC is a wholly owned company of the Reserve Bank. But suppose a person has accounts in several branches of a bank and if that bank goes bust, how much money will he get? Many people have many such questions in their minds regarding the insurance of Rs 5 lakh available under DICGC, to which they are unable to get answers. Know the answers to some such questions here.
In which banks the scheme will be implemented
All commercial banks in India (foreign banks, rural banks, cooperative banks) provide a guarantee of Rs 5 lakh on deposits. However cooperative societies are outside this scope. But the maximum amount available on insurance under DICGC will be Rs 5 lakh, which will include principal and interest.
If accounts in many branches of a bank and the bank goes bankrupt…
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 if the amount taken together is less than Rs 5 lakh, then the amount will be equal to the amount deposited. If the amount deposited is more than Rs 5 lakh, then only Rs 5 lakh will be given. No matter how much more than this your deposit is.
What about FD and other schemes?
The insurance amount of Rs 5 lakh covers any amount deposited in the bank. Meaning, that the amount deposited in the bank's savings account, FD, RD, or any other scheme, all the deposits are added. After this, a maximum amount of up to Rs 5 lakh is given. If all your deposits are only up to Rs 5 lakh, then your money comes out through insurance. But if it is more than this, then you have to bear the loss of whatever amount is more than Rs 5 lakh.
Understand with example
Suppose A has deposited Rs 4,00,000 in a bank's savings account, Rs 2,00,000 in FD, and Rs 22,000 in the current account. In such a situation, if all these amounts are added, then Rs 6,22,000 will be deposited in the bank. In such a situation, if his bank goes bankrupt, the customer will get a maximum of Rs 5 lakh only. He will have to suffer a loss of Rs 1,22,000.
If you have an account in 2 banks and both go bankrupt…
If a person has accounts in two or three banks and all those banks go bankrupt, then how much money will he get? This question will also be in the minds of many people. So first understand that such a situation does not come quickly, but if it does come, then different amounts of up to Rs 5 lakh will be given to different banks that fail. Suppose, you have deposits of Rs 5, 7, or 9 lakh in the form of savings, FD etc. in three banks A, B and C, and all three banks go bankrupt, then you will get Rs 5 lakh each for each bank i.e. a total of Rs 15 lakh. Will get Rs. But if you have deposits of Rs 5 lakh in one bank, Rs 4 lakh in another and Rs 3 lakh in another and all three banks go bankrupt, then you will get Rs 5 lakh, 4 lakh and 3 lakh i.e. a total of Rs 12 lakh. Keep in mind that the maximum limit of insurance is Rs 5 lakh. If the deposited amount is less than Rs 5 lakh then you will get only the amount deposited.
Who pays the insurance premium?
If you think that the premium for this insurance is collected from the customer only, then you are wrong. The premium for the guarantee of Rs 5 lakh given under this scheme is deposited by the bank where the customer has deposited the money. Although this premium is quite low, it is not charged from the customer.
Follow our Whatsapp Channel for latest update
