Govt Actively Considering Raising Deposit Insurance Limit Beyond Rs 5 Lakh

Eligible depositors are entitled to receive deposit insurance claim amounts of their deposits up to a monetary ceiling of Rs 5 lakh from the DICGC after due verification.

- TDG NETWORK

The government is actively considering raising the deposit insurance scheme limit beyond Rs 5 lakh, said the secretary at the Department of Financial Services, M Nagaraju, on Monday.

"As and when the government approves, we will notify it. This is under the consideration of the government," the top official told reporters at a press conference in Mumbai when asked to respond to the crisis-hit New India Cooperative Bank.

The secretary reiterated that increasing the insurance deposit insurance is under active consideration.

Deposit insurance, as we know it today, was introduced in India in 1962. India was the second country in the world to introduce such a scheme, the first being the US in 1933. Banking crises and bank failures worldwide underscored the need for depositor protection.