Mumbai. In the last few years, due to financial irregularities, the condition of many banks in the country had deteriorated and it had come to the extent that the Reserve Bank had banned money transactions. In such a situation, the most troubled were the customers of the banks. Due to these incidents, a question comes to the mind of many people what will happen to their money if the bank collapses?
If any bank in which you have an account sinks, then you get an amount of Rs 5 lakh. Actually according to the rules, if you have kept 5 lahks or more amount in a bank account, then in this case you get only 5 lakh rupees.
Government guarantees up to 5 lakhs
Under the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, the deposit amount in the bank is guaranteed to be five lakh rupees. Earlier this amount was Rs 1 lakh, but in the year 2020, the central government increased this amount to Rs 5 lakh by making changes in this law. That is, if the bank in which your money is deposited sinks, then you will get back the amount of five lakh rupees, even if the amount deposited in the account is more than five lakhs.
However, the government does not allow any bank surrounded by a financial crisis to sink. For this, the sinking bank is merged into a big bank. If still a bank collapses then DICGC is responsible for paying all the account holders. DICGC takes a premium from banks in return for guaranteeing this amount.
What is the law and where to apply
According to the rules of RBI, in case of banks sinking, within 45 days of joining AID, information about deposits and loans of all customers has to be made available. After this, DICGC has to return the money to the customers within 90 days.
In the new update related to August 2022, DICGC said that it insures a total of 2,035 banks in the country. Apart from this, if you want to know whether your bank is insured or not, then you can get its information by visiting https://www.dicgc.org.in/FD_ListOfInsuredBanks.html.
Let us tell you that in the last 15 months, 3 lakh customers of 35 banks in the country have faced such a situation. Under this, the government has returned about 4 thousand crore rupees to the people. Minister of State for Finance Dr. Bhagwat Kishanrao Karad told the Lok Sabha in December last year that 3,06,146 customers of 35 banks in the country have claimed money under the Deposit Insurance and Credit Guarantee Corporation Act. This amount was returned from September 1, 2021, to November 2022.