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LATEST NEWS UPDATES | Deposit insurance cover raised to Rs.5 lakh

Deposit insurance cover raised to Rs.5 lakh

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published Published on Feb 2, 2020   modified Modified on Feb 2, 2020
-The Hindu

The first increase in 27 years assumes significance in the wake of the crisis at PMC Bank

Mumbai:
The government has decided to increase the insurance cover for bank deposits to ?5 lakh from ?1 lakh, Finance Minister Nirmala Sitharaman said in her Budget speech. This is the first time since 1993 that the deposit insurance cover has been raised.

The Finance Minister assured that there was a robust mechanism in place to monitor the health of all Scheduled Commercial Banks and that depositors’ money was safe.

“The Deposit Insurance and Credit Guarantee Corporation (DICGC) has been permitted to increase [the] Deposit Insurance Coverage for a depositor, which is now ?1 lakh to ?5 lakh per depositor,” she said.

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The Hindu, 1 February, 2020, https://www.thehindu.com/business/budget/budget-2020-deposit-insurance-cover-raised-to-5-lakh/article30714464.ece?homepage=true


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