Banking Rules: All of us have a bank account. People deposit lakhs of rupees in the bank thinking that their money is completely safe. But is all your money 100% safe? Only a few people might know the rules made for the safety of bank deposits. If you also don’t know, then know them.
Banking Rules: In today’s time, everyone has a bank account. People deposit lakhs of rupees in this account. They get FDs of lakhs of rupees done. While investing such a large amount, everyone has only one thing in mind that their money is safe because they have got government guarantee on it. But suppose the bank in which you deposited money and that bank sinks or goes bankrupt, then what will happen to your money. Will the bank return your entire deposit? We all have accounts in not one but many banks, but only a few people will know the rules made for the safety of deposits in the bank. If you also do not know these rules, then definitely understand them.
Only this much amount is guaranteed
If the bank defaults under any condition, then only the deposit of up to Rs 5 lakh of the investors remains safe. If the bank has more money than this, then it will be lost. The reason for this is that the Deposit Insurance and Credit Guarantee Corporation (DICGC) gives insurance guarantee of only up to Rs 5,00,000 on bank deposits. DICGC is a company wholly owned by the Reserve Bank.
DICGC insures the banks of the country. The amount of this insurance is not taken from the customer. The premium for this is deposited by the bank where the customer has deposited the money. However, this premium is quite low. Let us tell you that earlier under this Act, an amount of up to Rs 1 lakh was given in case of bank sinking or bankruptcy, but then the government increased it to 5 lakhs. Foreign banks which have branches in India also come under its purview.
In which banks will the scheme be implemented
All commercial banks in India (foreign banks, rural banks, cooperative banks) get a guarantee of insurance of Rs 5 lakh on the amount deposited. But cooperative societies are outside this scope. But the insurance provided under DICGC will give a maximum amount of Rs 5 lakh, which will include the principal and interest.
If you have an account in several branches of a bank and the bank collapses…
If you have an account in two banks and both the banks collapse, then in such a situation you get Rs 5 lakh each from both the banks. But if you have opened accounts in your name in several branches of the same bank, then all such accounts will be considered as one. The amount of all these will be added and a maximum of Rs 5 lakh will be given to you by combining all of them. Even if you have deposited more than Rs 5 lakh, you will get only Rs 5 lakh. The amount above Rs 5 lakh will be lost.
What about FD and other schemes
The insurance amount of Rs 5 lakh covers any kind of deposit in the bank. This means that the amount deposited in the bank’s savings account, FD, RD or any other scheme, all the deposits are added. After this, a maximum amount of up to Rs 5 lakh is given. If all your deposits are up to Rs 5 lakh, then your money is covered by insurance. But if it is more than this, then you have to bear the loss of any amount above Rs 5 lakh.
Understand with an example
Suppose A has deposited Rs 4,00,000 in a bank’s savings account, Rs 2,00,000 in FD and Rs 22,000 in current account. In such a situation, if all these amounts are added, then he has Rs 6,22,000 deposited in the bank. In such a situation, if the bank collapses, the customer will get a maximum of Rs 5 lakh. He will have to bear a loss of Rs 1,22,000. But if there is Rs 2,00,000 in the savings account, Rs 2,00,000 in FD and Rs 50,000 in the current account, then the total amount is Rs 4,50,000. In such a situation, in case of bank collapse, you will get the entire amount back because it will remain within the limit of Rs 5 lakh.
In how many days does one get the money
In case of a bank sinking or closing down, DICGC collects all the information related to the customer’s accounts within 45 days. After this, an investigation is done and the amount is given to the customer within the next 45 days. This entire process takes about 90 days i.e. three months.
