Bank Deposit Insurance - how much money you will get if a Bank goes bust?* The DICGC has started the process of repaying the Deposits in CKP Co-op Bank. Letters have been posted to the depositors*. *Who are eligible to get back their deposits and how much?* *We take a look at these questions:* Last year, the Bank Deposit Insurance Cover has been raised five-fold to Rs 5 lakh — a huge comfort for small depositors - some of whom have been staring at losing their money kept in fraud-hit and mismanaged cooperative banks. Now if any bank fails, the depositors will get as much as Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the Reserve Bank of India (RBI). It took 27 years and a Rs 6,670-crore fraud in multi-state Punjab and Maharashtra Co-operative Bank to raise the cover. The latest revision, sixth since it started in 1962 with a Rs 1,500 cover, has been long overdue. Even though it’s a big jump from Rs 1 lakh, the l...
