New Delhi: A recent major robbery at country’s second-largest bank has worried investors about their deposits. Recently, Rs 7 lakh was robbed from Indore branch of Punjab National Bank (PNB). This has made people wonder if their money deposited in the banks is safe or not. If you are also wondering what will happen to your money if a robbery takes place in your bank. Let us understand this from experts and know what are the guidelines of the Reserve Bank of India (RBI) in this regard
Banking experts say that in such untoward situations, bank customers need not panic. They should have some patience because the Reserve Bank of India has made clear guidelines for such situations, due to which more and more customers get their money back.
Is your money safe in bank?
As per the rules of Reserve Bank of India, banks have to insure the deposits of their depositors. Banking expert Ashwini Rana told TV9 that a body Deposit Insurance and Credit Guarantee Corporation (DICGC) has been formed in the country. All commercial banks, co-operative banks and foreign banks operating in the country have to get their customers’ deposits insured by DICGC. In case of bank collapse or robbery, depositors get back the insurance money on deposits from DICGC.
How much money is insured by DICGC?
DICGC provides insurance cover to bank customers not on their total deposits but only up to a certain amount of deposits. At present, deposit insurance is available for amounts up to Rs 5 lakh. Earlier this limit was only Rs 1.50 lakh. This insurance limit of Rs 5 lakh includes your deposit and the interest received on it.
What type of Deposits are insured?
You deposit your money in the bank in many ways, so RBI has prepared complete guidelines regarding which deposits are covered under insurance cover. The list of which of your money is safe is given below.
DICGC provides insurance cover on all types of money deposited in your savings, current, recurring accounts and fixed deposits. Apart from this, DICGC provides insurance cover on the money deposited by foreign governments in the country.
DICGC’s insurance cover is available on deposits of central and state governments.
Apart from this, insurance cover is also available on the money deposited in State Land Development Banks in State Level Co-operative Banks. DICGC’s insurance cover does not cover you if your belongings kept in your locker are looted.
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Indore PNB Bank robbery: DICGC provides insurance cover to bank customers not on their total deposits but only up to a certain amount of deposits. So in an untoward situation, Bbanks are liable to return your deposit. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
