By Admin 
Generally people deposit their money and their savings in bank accounts only. Apart from this, people also invest their savings in bank FD and RD. But imagine that you come to know that the bank in which you have deposited your hard-earned money over the years has gone bankrupt. In such a situation, the first question that arises among people is whether their money will be safe or not. Regarding this fear, the important information given by the Reserve Bank of India and its subsidiary organization Deposit Insurance and Credit Guarantee Corporation comes in handy. In such a situation, let us now tell you that if the bank sinks, how much money do the customers get and what is the rule of RBI?
What is RBI’s rule in case of bank collapse?
According to RBI and DICGC data, by March 2025, about 97.6 percent of bank accounts in the country come under insurance cover. This means that even if a bank goes bankrupt, most account holders are guaranteed to get their deposits back. As per RBI rules, DICGC provides insurance cover up to a maximum of Rs 5 lakh to every depositor in a bank. This includes savings account, fixed deposit, recurring deposit and current account. Apart from this, let us tell you that this limit of insurance cover is also decided on per depositor and per bank basis. Bankruptcy process is applicable for amounts more than Rs 5 lakh. In this, an attempt is made to return the money to other depositors by selling the bank’s assets, but this may take time.
Small depositors safe, large amounts at risk
According to RBI rules, even though 97.6 percent of the accounts are insured in terms of number of accounts, only about 41.5 percent of the total deposited amount is covered under insurance cover. If we understand it in simple words, the money of small depositors is safe to a great extent, but a large part of the accounts in which large amounts are deposited remain in danger.
Where do you get money from if a bank collapses?
If a bank is not in a position to return the money of its depositors, then RBI can impose moratorium on it or merge it with another bank. At the same time, if the road is completely closed, the bank is also declared bankrupt. In such a situation, DICGC returns a maximum amount of up to Rs 5 lakh to the depositors from its insurance fund. This fund is prepared from the insurance premium taken from banks.
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