By Admin 
While depositing money in the bank, most of the people have the same question in their mind that if there is any crisis in the bank or it is closed, then what will happen to their deposited capital. The special thing is that many account holders are not aware that as soon as they open an account in the bank, their deposits are automatically insured. This protection is provided through the Deposit Insurance and Credit Guarantee Corporation, which is a wholly owned unit of the Reserve Bank of India. In such a situation, today let us tell you how insurance is done as soon as you open a bank account, about which many people do not know.
Which banks are covered under DICGC?
Almost all the banks of the country are covered under Deposit Insurance and Credit Guarantee Corporation. This includes public sector banks, private sector banks, small finance banks, regional rural banks, local area banks and most of the cooperative banks. That is, if your account is in an RBI licensed bank, then it usually comes under the purview of DICGC insurance.
On which deposits insurance is available?
The Deposit Insurance and Credit Guarantee Corporation provides insurance on almost all common types of deposits. This includes savings account, fixed deposit, recurring deposit, current account and other similar deposits. However, deposits of central and state governments, deposits of foreign governments, interbank deposits and deposits of certain special categories do not come under its purview. According to the rules of DICGC, every account holder gets a maximum insurance cover of up to Rs 5 lakh per bank. This amount is a combination of both the principal amount and the interest received on it. That is, if the total amount of all your accounts in a bank is Rs 5 lakh or less, then it is considered completely safe.
What if you have multiple accounts in one bank?
If a person has multiple accounts like savings account, FD and RD in the same bank, then the insurance cover is decided by adding the amount of all the accounts. In such a situation, total insurance will be available only up to a maximum of Rs 5 lakh. No matter how many accounts there are. Whereas if a person has accounts in two different banks, then the insurance cover of Rs 5 lakh is applicable separately for each bank. That means, an amount of Rs 5 lakh in one bank and Rs 5 lakh in another bank is considered safe.
How to get money in case of bank crisis?
If moratorium is imposed by RBI on any bank or the bank is closed, then DICGC starts the insurance process. In such cases, eligible account holders get their insured amount within the stipulated time.
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