FD Insurance: Hiding money in the bank is what everyone sees. When banks have to close down when they are not properly managed, there can be problems with the deposits made by the customers. At such a time clients can withdraw up to Rs. Union Finance Minister Nirmala Sitharaman has proposed to provide insurance cover of up to Rs 5 lakh. The Deposit Insurance Credit Guarantee Corporation (DICGC) guarantees customer deposits. That is, DICGC pays the customer’s deposit in the form of insurance when the banks fail. Previously this coverage was Rs 1 lakh. But it was revised last year. Insurance coverage of Rs 5 lakh on deposits came into effect from February 4, 2020. However, financial experts say this amount is not enough for most depositors. In this context, Rs. Clients need to be made aware of the possibilities of increasing insurance coverage up to Rs 65 lakh. This facility is available at the same branch where you currently have an account.
What kind of insurance does DICGC offer?
DICGC provides insurance coverage on deposits such as Savings Accounts, Fixed Deposits, Current Accounts and Recovering Deposits. But insurance does not apply to deposits of foreign governments, deposits of Central and State Governments, State Co-operative Banks, other deposits of the Government and deposits excluded by the Reserve Bank.
How to pay for insurance?
Clients will be able to get insurance up to Rs. However, the maximum insurance limit for all types of deposits is Rs 5 lakh. If the original deposit of Rs. Up to Rs 5 lakh .. Clients can claim insurance up to that. There is no guarantee of interest due on it. If the actual, plus interest is less than Rs 5 lakh, it is possible to get the money in full. Therefore, care should be taken not to exceed the monthly interest deposit limit of Rs. 5 lakhs.
However, if customers opt for different types of schemes and deposits in the same bank, they will be charged Rs. Insurance is available up to Rs 5 lakh. Customers who opt for bank FDs should take one jointly with a minor, one individually and the other with a spouse. Customers can claim up to Rs 5 lakh on all these FD accounts if the banks close. But the maturity of the deposits should not exceed Rs 5 lakh.
Does this facility apply to all banks?
But does this apply to all banks? The suspicion is in most people. All foreign banks, commercial and co-operative banks operating in our country fall under the ‘Deposit Insurance Credit Guarantee Corporation’ (DICGC). However, DICGS insurance does not apply to deposits of primary co-operatives, NBFCs and HFCs. Therefore, investments should be selected on the basis of deposit security and insurance guarantee. Care should be taken not to exceed the deposit limit of Rs. 5 lakhs. Those who choose to invest based on such benefits are advised to seek the advice and suggestions of financial experts.